Asian Stocks Fall After U.S. Deficit Talks Fail (Source: Bloomberg)
Asian stocks erased earlier loses after Standard & Poor’s and Moody’s Investors Service said they won’t lower credit ratings on the U.S. following a congressional committee’s failure to agree on deficit cuts. The MSCI Asia Pacific Index rose 0.1 percent to 112.51 as of 10:21 a.m. in Tokyo after falling as much as 0.7 percent.
S&P 500 Posts Worst Losing Streak in 2 Months (Source: Bloomberg)
U.S. stocks slumped, giving the Standard & Poor’s 500 Index its longest decline since September, amid concern the U.S. government will be forced to submit to $1.2 trillion in automatic spending cuts. All 10 industries in the benchmark measure declined as 468 out of 500 companies retreated. Bank of America Corp. tumbled 5 percent to pace losses in financial shares. Hewlett-Packard Co. (HPQ) and Caterpillar Inc. (CAT) dropped at least 2.9 percent. The Dow Jones Transportation Average slid 2.3 percent. Gilead Sciences Inc. (GILD) plunged 9.1 percent after agreeing to buy Pharmasset Inc. (VRUS) for about $11 billion in cash. Pharmasset soared 85 percent. The S&P 500 fell 1.9 percent to 1,192.98 at 4 p.m. New York time. The benchmark gauge for American equities has lost 5.2 percent in four days. The Dow Jones Industrial Average declined 248.85 points, or 2.1 percent, to 11,547.31 today. The supercommittee created to cut the deficit said after the close of U.S. exchanges that it failed to reach a deal.
European Stocks Tumble Amid U.S. Budget Concern; Banks Retreat (Source: Bloomberg)
European stocks dropped the most in three weeks amid signs U.S. lawmakers may fail to reach an agreement on budget cuts, raising the prospect the world’s largest economy could face another credit downgrade. KBC Groep NV (KBC) led banks lower as dollar funding costs and bond yields climbed. Mining and energy companies dropped with metal and crude oil prices on signs of slowing growth in Asia. Carrefour SA (CA) slipped 3.2 percent after the retailer’s largest shareholders were said to consider replacing its chairman and chief executive officer. The benchmark Stoxx Europe 600 Index sank 3.2 percent to 224.76 at the close, the gauge’s biggest retreat since Nov. 1. The Stoxx 600’s slump extended last week’s 3.7 percent selloff. Stocks tumbled around the world last week as the yields on Italian and Spanish bonds climbed, and the cost of insuring against losses on the nations’ debt rose.
Sales of Existing U.S. Homes Unexpectedly Increase: Economy (Source: Bloomberg)
Sales of previously owned homes in the U.S. unexpectedly rose in October, a sign falling prices may be attracting buyers. Purchases increased 1.4 percent to a 4.97 million annual rate, the National Association of Realtors said today in Washington. The median forecast of 75 economists surveyed by Bloomberg News was for a 4.8 million rate. The median house price dropped 4.7 percent from a year earlier, and the number of properties for sale was the lowest for any October since 2005. Borrowing costs near a record low are helping homebuyers take advantage of housing that’s growing more affordable as prices drop. At the same time, the end of a temporary halt on foreclosures may push more properties onto the market, triggering further slides in value that may prevent the industry from recovering for years.
Supercommittee Fails to Identify Even Bogus Cuts: Caroline Baum (Source: Bloomberg)
It took a fictional jury of “12 Angry Men” 96 minutes to agree on a verdict of not guilty. It took “12 good people,” as supercommittee co-chairman Jeb Hensarling referred to them, three months and countless hours to produce ... nothing. Just to put things in perspective, the Joint Select Committee on Deficit Reduction was charged with finding a minimum of $1.2 trillion in savings over 10 years. These wouldn’t have been cuts in the normal sense. A salary cut means my paycheck is smaller each month. A deficit cut, in federal budget speak, isn’t a reduction in the deficit. The only thing being cut is the rate at which the deficit is growing. Had the supercommittee fulfilled its mission, the U.S. would face cumulative deficits of $3.5 trillion over the next 10 years, compared with $4.7 trillion without cuts, according to projections by the Congressional Budget Office.
U.S. Ratings Affirmed by S&P, Moody’s After Supercommittee Fails on Budget
U.S. Congress deadlocks over energy and jobs: John Kemp
-- John Kemp is a Reuters market analyst. The views expressed are his own --
NEW YORK, Nov 18 (Reuters) - The failure of the planned national cap-and-trade scheme to curb greenhouse emissions in 2009-2010 has left the United States without a coherent policy for addressing either the threat posed by climate change or problems of energy affordability and security.
Instead there is an incoherent muddle as the White House and Congress fail to integrate hyper-partisan demands from energy producers and groups concerned about carbon emissions, pollution and the environment.
U.S. Ratings Affirmed by S&P, Moody’s (Source: Bloomberg)
Standard & Poor’s and Moody’s Investors Service said they won’t lower ratings on the U.S. after the congressional committee charged with finding $1.5 trillion of deficit cuts failed to reach an agreement. S&P, which stripped the U.S. of its top AAA grade on Aug. 5, said yesterday that the supercommittee’s inability to reach agreement didn’t merit another downgrade because the inaction will trigger $1.2 trillion in automatic spending cuts. The deliberations were “not decisive,” Moody’s spokesman Eduardo Barker said in an e-mail after the panel issued a statement. Fitch Ratings reiterated that the talks failure would likely lead to a revision of the U.S. rating outlook to negative.
The August downgrade sparked the biggest quarterly rally in U.S. Treasuries since the end of 2008, while global equities lost $9.7 trillion in market value during that period. The lack of a deal raises the risk of slower growth and deprives President Barack Obama of a vehicle to extend a payroll tax cut and insurance benefits for unemployed Americans, which expire at the end of the year.
U.S. Debt Panel Fails to Agree on Cuts (Source: Bloomberg)
A special debt-reduction committee in the U.S. Congress failed to reach agreement, extending partisan gridlock into the 2012 election year and setting the stage for $1.2 trillion in automatic spending cuts. President Barack Obama blamed Republicans, saying in remarks at the White House they “refused to listen to the voices of reason and compromise.” The president said he would veto any move to avoid the automatic spending cuts that are supposed to start in 2013 as a result of panel’s failure. Committee co-chairmen Representative Jeb Hensarling of Texas, a Republican, and Senator Patty Murray of Washington, a Democrat, said in an e-mailed statement that “after months of hard work and intense deliberations, we have come to the conclusion today that it will not be possible to make any bipartisan agreement available to the public before the committee’s deadline.”
Treasuries Drop, Snapping Gain, as Auction Poised to Draw Record Low Yield (Source: Bloomberg)
Treasuries snapped a gain from yesterday as the U.S. prepared to sell $35 billion of five-year notes today, with the auction poised to draw a record low yield. Benchmark 10-year rates were little changed at 1.97 percent of 9:48 a.m. in Tokyo, according to Bloomberg Bond Trader prices. The 2 percent security maturing in November 2021 changed hands at 100 9/32. The five-year notes being auctioned today yielded 0.93 percent in pre-auction trading, versus 1.055 percent at the prior sale on Oct. 26. The record low auction yield was 1.015 percent on Sept. 28. Treasuries rallied yesterday as investors sought safety amid U.S. budget gridlock and a debt crisis in Europe.
Treasuries Rising Most Since 2008 as Budget Paralysis Seen (Source: Bloomberg)
With Congress at an impasse on how to reduce the U.S. budget deficit, the biggest rally in government bonds since 2008 shows no signs of letting up even as yields are about the lowest on record. Treasuries have returned 0.9 percent this month, 3.4 percent since the U.S. was downgraded to AA+ by Standard and Poor’s Aug. 5, and 8.9 percent this year, according to Bank of America Merrill Lynch index data. The cost of derivatives to protect against a U.S. default is about half that for AAA rated Germany or the U.K. as Europe’s debt crisis has spread from Greece, according to data provided by CMA.
After the downgrade, and with lawmakers said to have failed to reach agreement on cutting $1.2 trillion from the deficit ahead of a deadline, U.S. bonds have still been the best investment this year. Yields may stay low as the Federal Reserve holds down rates and political wrangling in the U.S. threatens the global recovery. Spending cuts triggered by lack of a budget plan would lop as much as 2 percentage points off growth in the first quarter of 2013, according to JPMorgan Chase & Co.
No Deficit Deal as Focus Turns to 2012 (Source: Bloomberg)
Lawmakers on a special debt- reduction committee are poised to announce they failed to reach agreement and dissolve congressional gridlock, kicking tax and spending issues into the 2012 election year. Treasuries rallied while riskier assets declined as the congressional supercommittee’s deadlock spurred demand for safer assets. Senator Jon Kyl of Arizona, a Republican on the 12-member panel, said on CNBC the Republican and Democratic committee co- chairmen, Representative Jeb Hensarling of Texas and Senator Patty Murray of Washington, would make a formal announcement “toward the end of the day.” They are expected to say the panel can’t agree on deficit reduction of at least $1.2 trillion, triggering across-the-board cuts of the same amount starting in 2013.
“The next election certainly will have a big bearing on the question of what’s the scope and size of the federal government, and do we want to try to tax our way out of this or grow our way out,” Kyl said. There will be efforts to “ameliorate” effects of the cuts over the next year, he said.
Yuan Halts Two-Day Decline After Wen Pledges Further Exchange-Rate Reform (Source: Bloomberg)
Yuan forwards fell by the most in more than a month on speculation capital outflows will take pressure off policy makers to speed up gains in the currency. The yuan also declined as concern U.S. lawmakers won’t be able to reach agreement on cutting the budget deficit reduced demand for emerging-market assets. Yuan holdings at Chinese banks fell for the first time since December 2007, dropping a net 24.9 billion yuan ($3.9 billion) in October, according to a statement on the People’s Bank of China website today. Economists watch the numbers for signs of inflows or outflows of so-called hot money. “Given the external environment, China will slow down the yuan’s appreciation,” said Rees Kam, a Hong Kong-based senior strategist at SJS Markets Ltd. “The likely collapse of an agreement among the U.S. congressional budget deficit panel would hurt risk sentiment.”
Japanese Exports Decline as China Sees Prolonged Global Slowdown: Economy (Source: Bloomberg)
Japanese exports dropped more than forecast in October, Singapore said its growth may slow to 1 percent next year and China signaled the global economy faces an extended slide. The reports may raise pressure on policy makers in export- reliant Asia to implement further stimulus measures. A record of the Bank of Japan’s Oct. 27 meeting today showed one board member favored adding 10 trillion yen ($130 billion) in asset purchases, and Chinese Vice Premier Wang Qishan said his nation must adopt more “forward looking” and flexible monetary policy. “Things are going to get worse before they get better,” said Vishnu Varathan, a Mizuho Corporate Bank Ltd. economist in Singapore. “Export growth will slow across Asia and we may see financial shocks coming through. Asian policy makers are going to become stimulatory all over again.”
Thailand Says GDP May Shrink 3.7% on Floods, Adding to Case for Rate Cut (Source: Bloomberg)
Thailand’s economy may shrink 3.7 percent this quarter following the worst flooding in almost 70 years, the government said, adding to the case for an interest- rate cut as early as next week. Gross domestic product rose 3.5 percent in the three months through September from a year earlier, after climbing a revised 2.7 percent in the previous quarter, the National Economic and Social Development Board said in Bangkok today. It also forecast the contraction and lowered its estimate for 2011 growth to 1.5 percent, from as much as 4 percent earlier. The floods have killed more than 600 people, swamped thousands of factories and disrupted supplies for companies from Apple Inc. to Toyota Motor Corp. The damage may reach 300 billion baht ($9.7 billion), the board said, and the Bank of Thailand has signaled room to cut rates to prop up growth as well as counter threats from Europe’s sovereign-debt crisis.
Tuesday, November 22, 2011
20111122 1008 Global Commodities Related News.
Commodities Decline for Third Session on U.S. Budget Impasse, Europe Debt (Source: Bloomberg)
Commodities sank a third day on speculation that U.S. lawmakers won’t agree on a plan to reduce the deficit and amid concern Europe’s debt crisis will send the region into recession. The Standard & Poor’s GSCI Index of 24 raw materials fell 1.4 percent. Cotton slumped to a 14-month low, cocoa slid to the lowest in 30 months and silver also declined. A 12-member bipartisan debt-reduction committee will probably announce today that it can’t reach agreement on deficit reductions of at least $1.2 trillion. Germany’s Finance Ministry said the country’s expansion has gotten “noticeably slower.” “The euro-zone debt crisis and news that the U.S. Congress has failed to agree to measures to reduce the budget deficit depressed commodities,” Greg Grow, the director of agribusiness at Archer Financial Services Inc. in Chicago, said in a telephone interview.
Tyson Foods Sees Flat 2012 Demand As Grain Rises
The head of Tyson Foods Inc. said that grain prices may rise again next year, leaving a flat demand outlook for the largest U.S. meatpacker as it continues efforts to pass price rises on to consumers and food-service buyers. Higher feed costs have driven a sharp increase in beef prices while even the oversupplied chicken sector has seen some recovery as producers cut back supplies after what Tyson President and Chief Executive Donnie Smith called two of the toughest summer months the industry has ever experienced. Volatile grain markets left Tyson nursing losses on hedging contracts while chicken demand was poor over the key July 4 holiday weekend, leaving the company with a 54% decline in fiscal fourth-quarter profit. Smith said Tyson's chicken segment returned to profitability in October, and forecast U.S. industry supplies would drop 4% in its 2012 fiscal year, with beef production down 1% to 2% over the same period.
The executive said on a post-earnings call that he expected U.S. gross domestic product to rise by just 1.5% next year, leading him to keep a close eye on retail demand as the company continued efforts to pass on higher feed costs. Smith also said Tyson was pushing its international expansion "as hard as we can" to offset weakness in domestic markets which he saw flat for both retail and food-service segments. Tyson forecast sales would rise above $34 billion next year from $28.4 billion in fiscal 2011, and Smith said on the call that the company would pursue its "conservative" hedging strategy despite wracking up mark-to-market losses on grain futures contracts. For the quarter ended Oct. 1, Tyson reported a profit of $97 million compared with $213 million a year earlier. Per-share earnings fell to 26 cents from 57 cents, undershooting analysts' expectations.
Earnings in the beef segment--the largest top-line contributor--were down 2.5% as revenue rose 16% on a 19% jump in average prices, but volume fell 2.3%. The chicken business swung to a loss despite 9.2% revenue growth, and volume rose 3.7% with 5.3% higher prices.
Corn
US corn futures ended lower, extending the market's recent downtrend as global economic fears prompt widespread cross-asset selling pressure caused by bearish economic and political factors. Corn prices were also anchored by an overall sluggish export sales pace. Futures fall to a 7-week low, with December corn settling below $6/bushel at $5.97 3/4 while March fell 13c to $6.05.
Wheat
US wheat futures closed lower, succumbing to the broader-based selling that filtered across asset classes. Global economic fears associated by European debt and the failure of the US supercommittee to agree on a plan to reduce deficit levels encouraged traders to reduce risk exposure. Poor export demand added to the bearish theme. However, hard-red winter wheat futures in Kansas City did pare losses, briefly trading higher on worries about dryness issues for crops in the southern Plains. CBOT March wheat ended down 6 3/4c at $5.91 1/2 a bushel as KCBT March dropped 1 1/4c to $6.78 and MGEX December dropped 12 3/4c to $8.62 1/2.
Rice
US rice futures fell, falling to 4 1/2 month lows. General weakness across broader asset classes encouraged traders to reduce risk exposure in unison with the declines seen amid other grain futures, analysts say. CBOT Jan Rice ended down 22 1/2c, or 1.5%, to $14.45 1/2/hundredweight.
Corn, wheat slip as euro zone crisis weighs on market
KUALA LUMPUR, Nov 21 (Reuters) - U.S. corn declined for a fourth day because of euro zone debt worries and increased supply as the United States harvested its crop, and other food grains also fell as the global uncertainty kept investors away from riskier assets.
"The European debt crisis means investors are putting money into lower-risk assets, which are not commodities," said Malcolm Bartholomaeus, a senior grains analyst at consultancy Profarmer Grain in Melbourne.
Algeria close to breaking grain import record
ALGIERS, Nov 20 (Reuters) - Algeria is this year close to breaking its all-time record for wheat imports, customs data showed on Sunday, after the government, worried about unrest in the wake of the "Arab Spring" uprisings, embarked on a grain buying spree.
The data seen by Reuters showed total wheat imports were 6.35 million tonnes in the January-October period of this year, up 40.5 percent on the same period in 2010.
Rain to slow final corn harvest in Ohio
CHICAGO, Nov 18 (Reuters) - Showers early next week will slow the final harvest of corn in Ohio and crop-friendly rains are expected next week in the Plains hard red winter wheat belt, an agricultural meteorologist said on Friday.
"Showers in the first half of next week will keep late harvest slow in Ohio and the rains could cause flooding in the northern Delta," said Joel Widenor, meteorologist for Commodity Weather Group.
Weather favours Russia crop planting, hard on Ukraine
KIEV, Nov 18 (Reuters) - Favourable weather is laying the foundation for Russia to dominate the regional grain export market again next season while a disastrous autumn in Ukraine is leaving farmers with tough choices over how make up for damaged winter sowings.
Russia, which plans to harvest around 100 million tonnes of grain this year, reported perfect weather conditions for its winter grains, looking forward to a second record export season in a row in the 2012/13 season.
Agribusiness Fund Goes Farther Afield For Harvest
As the global population continues to grow and investors' interest in agriculture expands, Adam Patti says it is good to stay small. His agriculture ETF, the IQ Global Agribusiness Small Cap fund, bypasses the largest, household names in the sector, such as Archer Daniels Midland, Monsanto Co., and Mosaic Co. Instead, the fund's portfolio is filled with names that Patti admits most investors have never heard of. In doing so, the fund offers a different path to diversify and invest in "hidden gems," said Patti, founder and CEO of Index IQ. Investors aren't following them, analysts aren't covering them. "These are the companies those in the large-cap space are looking to acquire," he said. But Patti isn't just awaiting a one-time pop, and said small-cap funds tend to outperform large caps.
The fund started in March, arriving in the midst of a global boom in agriculture, fueled by rising populations and income levels in emerging markets such as China, where people are eating more meat, and by substandard crops and biofuel demand. That has sent prices for crops and livestock soaring, boosting the profile for companies in fertilizer, farm equipment, seed and meat production. But as investors flock to large agribusiness companies and funds such as the Market Vectors Agribusiness ETF (MOO) -- the dominant agriculture-related mutual fund -- some of the benefits of diversification are lost, Patti said. "When people want to play the theme, they pour billions of dollars into ADM," he said. Meanwhile, smaller companies can be overlooked and undervalued, he said.
The fund corresponds to the IQ Global Agribusiness Small Cap Index, which was created in February. Patti said he doesn't expect investors to invest in his fund as opposed to Market Vectors Agribusiness, but to invest in both as part of a well-rounded approach to the agriculture sector. Compared to Market Vectors Agribusiness, the "800-pound gorilla," CROP is just a "spec on the radar," said Morningstar analyst Abraham Bailin said. It has $37 million in assets, compared to $5.7 billion for MOO. But Bailin said investors could see a good chance to diversify by investing in the IQ Global Agribusiness Small Cap fund and its roster of smaller companies. He said the largest companies in agriculture are often involved in chemicals and more exposed to energy prices, making them less of a pure play.
While the fund has outperformed Market Vectors Agribusiness since its inception, "neither one of these are yield plays," Patti said. The nascent fund has posted a three-month return of 0.22%, versus negative 4.5% for the world stock category, according to Morningstar data. Market Vectors Agribusiness has a three-month return of negative 0.15%, but both MOO and CROP have lagged the Standard and Poors' three-month return of 7.2%. Analysts have touted agriculture investments as a hedge against inflation, and as a way to invest in a global population expected to balloon to 9 billion by mid-century. "The agriculture story, regardless of how you play it, is the story in the next 10 years," Patti said. About 20% of CROP's holdings are in emerging markets in Asia, which is central to the growth story in agriculture. Another 23% are in Japan, and 32% of the holdings are in North America.
While many of the holdings would be considered obscure to the typical North American investor, its top holdings -- and top performers -- are relatively well-known. The largest holding is Tractor Supply Corp. (TSCO), a farm supply company that is broadly exposed to agriculture and has had a 49.9% return year-to-date, according to Morningstar data. Another large holding, Smithfield Foods (SFD), has surged thanks to a booming export market for pork, particularly to China. It has posted returns of 12.6% year-to-date. Many of the fund's laggards have been foreign companies, such as China Modern Dairy Holdings Ltd., which comprises 1.6% of the portfolio and has lost 25.4% year-to-date, according to Morningstar data.
Asia Rice Prices May Rise Due To Tight Supply
Asian rice prices will likely rise this month as supply continues being squeezed in Thailand, the world's largest exporter, though sales by India and Pakistan will cap gains, trading executives said. "Strain is beginning to show in the market as the government steps up purchases at the guaranteed price," a Singapore-based exporter said. Keeping a pre-election promise, the Thai government is buying unmilled rice, or paddy from growers at THB15,000 a metric ton, while the market price is THB10,000 a ton or lower. Thai rice prices have increased by around $20/ton so far this month because the government's price has now become a benchmark, said Chookiat Ophaswongse, Honorary President, Thai Rice Exporters Association. Thai 5% broken white rice is now being offered around $615/ton, free-on-board and 25% broken around $580/ton. Vietnamese rice grades are mostly between $500-$550/ton, FOB. However there aren't many buyers at current price levels.
Due to the floods and high prices, hardly any fresh sales are taking place, said Christophe Cousin, managing director of Prasert & Sons, a Thailand-based rice brokerage. Thai rice exports are likely to fall to 500,000 tons or lower this month compared with 628,000 tons in October and an average 1.0 million tons each month during the first half of 2011. Some of this shortfall in Thai supply is being met by sales from India and Pakistan, where export cargoes are cheaper by as much as $200/ton, on an FOB basis. Last week, Indonesia, the world's largest rice importer, purchased 250,000 tons from private Indian companies at $483/ton, basis cost and freight. This marks a paradigm shift in Indonesia's rice import strategy and also shows pragmatism, because Thai and Vietnam rice is costlier, a Singapore-based exporter said. If the quality is found acceptable, it may open the door for Indian rice in Jakarta permanently, another trader said.
India has already contracted sales of more than 1.0 million tons ordinary, or non-Basmati rice since allowing shipments in September. Sales from the India are definitely a boon for buyers in Asia and Africa because its absence could have made rice even costlier, a trader in Bangkok said. However, analysts point out that India has limited infrastructure and it is difficult for monthly exports to exceed 500,000 tons. India's 5% and 25% broken white rice is being offered around $440/ton and $385/ton, FOB. Prices have already bottomed out and a further downward correction is unlikely.
ICE cocoa sets 2-1/2 year low, sugar rebounds
LONDON, Nov 21 (Reuters) - ICE cocoa futures dipped to a 2-1/2 year low in early trade on Monday as the deepening economic crisis combined with bearish market fundamentals to drive prices lower.
Arabica coffee futures also eased while raw sugar rebounded from the prior session's five-month low.
India again puts off meeting on sugar export to Tuesday
NEW DELHI, Nov 21 (Reuters) - India has again put off to Tuesday a meeting to consider allowing a first tranche of sugar exports, government sources said, sending domestic prices down as traders worried ministers could not agree on the quantity for overseas sales.
Earlier, government sources had said a panel of ministers, empowered to permit exports, was scheduled to meet at 3.45 pm (1015 GMT) on Monday.
Brazil sugar output seen up in 2012/13-Kingsman
SAO PAULO, Nov 20 (Reuters) - Sugar output in centre-south Brazil is expected to rise to 32.5 million tonnes in 2012/13, some 2 million tonnes more than in 2011/12, Jonathan Kingsman, managing director of consultancy Kingsman SA, said on Sunday.
He told Reuters that he expected cane output in centre-south Brazil, the main growing region of the world's No. 1 sugar producer, to stand at 515 million tonnes in 2012/13.
China could import sugar from India -ISO
NEW DELHI, Nov 21 (Reuters) - China, set to resume sugar imports to shore up depleted stocks, could buy the sweetener from India, which is soon likely to permit this year's first tranche of overseas sales, the chief of the International Sugar Organization (ISO) said.
"It makes sense for both India and China to tie up some trade deals," ISO Executive Director Peter Baron told Reuters in an interview.
Brazil sugar losing competitiveness-Kingsman
SAO PAULO, Nov 20 (Reuters) - Brazil is losing its competitive advantage as a sugar producer because of rising costs, creating opportunities for beet growers like Russia and reducing world sugar trade, a senior analyst said on Sunday.
Jonathan Kingsman, managing director of consultancy Kingsman SA, told Reuters that Brazil, the world's No. 1 sugar producer and exporter, now produced sugar at a cost of 18-22 cents a lb, up from around 4 cents a lb in the 1990s.
Brazil Sugar Week to focus on competitiveness
SAO PAULO, Nov 20 (Reuters) - Brazil's rising costs of sugar production and the challenge of how to help the domestic ethanol industry meet strong biofuel demand will be key themes of Brazil Sugar Week starting on Monday.
The events this week will bring together several hundred traders, brokers, fund managers, analysts and industry leaders from around the world for conferences and seminars on sugar and ethanol culminating in an industry dinner on Thursday.
Dryness fears ease as rain soaks Brazil coffee
BRASILIA, Nov 18 (Reuters) - Concerns about overly-dry weather in the early stages of the development of Brazil's coffee crop have eased after good showers this week that look set to continue, a forecaster and agronomist said.
Trees had begun shedding some delicate blossoms due to dryness in the last few weeks after a burst of flowering that will essentially fix the size of the harvest in the 2012 crop in the world's No. 1 coffee grower.
Colombia '11 coffee output to miss goal but value up
BOGOTA, Nov 18 (Reuters) - Colombia's coffee growers federation said on Friday that bean production would be 8 million 60-kg bags this year, worse than earlier predictions about the impact of heavy rains on output.
This is the third consecutive year that coffee production in the world's top producer of high-quality Arabica beans will fall below the federation's target as bad weather, fungus and a tree renovation program cut output.
Indonesia rubber exports seen falling in Q4-assoc
JAKARTA, Nov 18 (Reuters) - Indonesia's natural rubber exports in the fourth quarter are seen dropping to 500,000 tonnes, from more than 600,000 tonnes per quarter so far this year, on weaker demand from key consumers such as China, an industry official said on Friday.
Worries about slowing demand could lead growers in the world's second-biggest rubber producer to cut exports if prices keep falling, the country's rubber association said, ahead of a meeting at the end of this week by top producers to discuss the market.
Euro Coal-Prices steady, no trades seen
LONDON, Nov 18 (Reuters) - Prompt physical coal prices were broadly steady on Friday with no fresh trades reported.
Europe remains flush with coal and unless the weather turns sharply colder, utilities will not need much more spot material this winter.
"Yesterday and the day before there was some activity and traders today looked happy to sit the week out," one European dealer said. "A lot of people will be happy to sit the rest of the year out seeing as we are already in the middle of November."
US coal consumption fell 1 pct last week - Genscape
Nov 18 (Reuters) - U.S. coal consumption fell 1 percent last week and was down 8 percent from the same week a year ago, according to power industry data monitor Genscape.
Coal use swings up and down seasonally and varies from week to week and region to region, depending on electricity demand to run air-conditioners or power heaters.
Crude falls on fears U.S. deficit talks may fail
KUALA LUMPUR, Nov 21 (Reuters) - U.S. crude fell more than $1 and Brent crude declined on concerns that U.S. lawmakers will fail to agree on plans to reduce the nation's deficit.
"This might give Standard & Poor's an opportunity to cut ratings further," said Alvin Liew, a senior economist at UOB Bank Ltd. in Singapore.
Pakistan Oct fuel oil imports at 6-mth low
SINGAPORE, Nov 21 (Reuters) - Pakistan has imported less than 400,000 tonnes of fuel oil for October, its lowest volume in six months, as transport problems due to heavy flooding hit demand, official data showed on Monday.
The country's main buyer, Pakistan State Oil , also bought the lowest volumes, at 780,000 tonnes, for its usual three-month cycle, just about a month ago.
Japan Oct LNG import volume up 17.9 pct
TOKYO, Nov 21 (Reuters) - Japan's liquefied natural gas imports climbed by more than 10 percent from a year earlier for the sixth straight month in October, Ministry of Finance data showed on Monday, as gas-fired power generation continued to surge due to the Fukushima nuclear crisis.
Japan, the world's biggest LNG buyer, last month imported 17.9 percent more LNG than a year earlier as heightened public concerns about nuclear safety have kept any reactor taken offline for routine maintenance from restarting.
Oil Trades Near One-Week Low on European Crisis Concern, U.S. Stockpiles (Source: Bloomberg)
Oil traded near the lowest price in more than a week in New York as investors speculated that fuel demand may falter as economic growth in Europe stalls and supplies rise in the U.S. Futures were little changed after dropping for a third day yesterday. Growth in Germany, Europe’s largest economy, may slow next year, the Bundesbank said. A U.S. Energy Department report tomorrow may show oil and fuel supplies increased last week, according to a Bloomberg News survey. Saudi Arabian Oil Co. Chief Executive Officer Khalid Al-Falih said the world economy is at risk of a double-dip recession. “We think consumption in the U.S. is still very subdued,” said David Lennox, a resource analyst at Fat Prophets in Sydney, who previously forecast oil would trade from $85 to $95 a barrel. “Any economic slowdown in Europe impacts on crude demand. We see $80 being the floor.”
Crude oil for January delivery was at $96.83 a barrel, down 9 cents, in electronic trading on the New York Mercantile at 11:52 a.m. Sydney time. The contract slipped 75 cents yesterday, or 0.8 percent, to $96.92, the lowest settlement since Nov. 9. Prices are 19 percent higher than a year ago.
Iron Ore-Spot prices may retreat after rally, China rebar falls
SINGAPORE, Nov 21 (Reuters) - Iron ore may fall this week as the market takes a breather after a rally seen to have taken place too swiftly, with sluggish steel demand in top consumer China likely to curb buying of the raw material.
Iron ore with 62 percent iron content eased 0.1 percent to $147.40 a tonne on Friday, according to the Steel Index, ending a 14-day rally that was the commodity's longest winning streak.
10 daily steel output lowest since Nov 2010
BEIJING, Nov 18 (Reuters) - Daily crude steel output in China stood at 1.664 million tonnes in the first 10 days of November, its lowest since November 2010, latest data from the China Iron and Steel Association showed on Friday.
Since October, steel mills across the country have scheduled overhauls in order to shield themselves from falling prices and slowing demand.
China imported iron ore stocks at new high in wk to Nov 18
BEIJING, Nov 18 (Reuters) - Inventories of imported iron ore at major Chinese ports hit a record 98.09 million tonnes this week, up 1.9 percent from last week, figures from industry consultancy Mysteel showed on Friday.
Iron ore prices have rallied by about $30 since reaching a 22-month low of $117 per tonne in late October, with Chinese steel mills replenishing stocks for the winter.
Baltic index falls, fleet growth adding pressure
LONDON, Nov 18 (Reuhters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, turned negative on Friday as weaker sentiment and a build up of available vessels weighed on the market.
Brokers expect the shipping sector to see more turmoil in the coming months as a supply glut and growing economic gloom would keep earnings under pressure.
Commodities sank a third day on speculation that U.S. lawmakers won’t agree on a plan to reduce the deficit and amid concern Europe’s debt crisis will send the region into recession. The Standard & Poor’s GSCI Index of 24 raw materials fell 1.4 percent. Cotton slumped to a 14-month low, cocoa slid to the lowest in 30 months and silver also declined. A 12-member bipartisan debt-reduction committee will probably announce today that it can’t reach agreement on deficit reductions of at least $1.2 trillion. Germany’s Finance Ministry said the country’s expansion has gotten “noticeably slower.” “The euro-zone debt crisis and news that the U.S. Congress has failed to agree to measures to reduce the budget deficit depressed commodities,” Greg Grow, the director of agribusiness at Archer Financial Services Inc. in Chicago, said in a telephone interview.
Tyson Foods Sees Flat 2012 Demand As Grain Rises
The head of Tyson Foods Inc. said that grain prices may rise again next year, leaving a flat demand outlook for the largest U.S. meatpacker as it continues efforts to pass price rises on to consumers and food-service buyers. Higher feed costs have driven a sharp increase in beef prices while even the oversupplied chicken sector has seen some recovery as producers cut back supplies after what Tyson President and Chief Executive Donnie Smith called two of the toughest summer months the industry has ever experienced. Volatile grain markets left Tyson nursing losses on hedging contracts while chicken demand was poor over the key July 4 holiday weekend, leaving the company with a 54% decline in fiscal fourth-quarter profit. Smith said Tyson's chicken segment returned to profitability in October, and forecast U.S. industry supplies would drop 4% in its 2012 fiscal year, with beef production down 1% to 2% over the same period.
The executive said on a post-earnings call that he expected U.S. gross domestic product to rise by just 1.5% next year, leading him to keep a close eye on retail demand as the company continued efforts to pass on higher feed costs. Smith also said Tyson was pushing its international expansion "as hard as we can" to offset weakness in domestic markets which he saw flat for both retail and food-service segments. Tyson forecast sales would rise above $34 billion next year from $28.4 billion in fiscal 2011, and Smith said on the call that the company would pursue its "conservative" hedging strategy despite wracking up mark-to-market losses on grain futures contracts. For the quarter ended Oct. 1, Tyson reported a profit of $97 million compared with $213 million a year earlier. Per-share earnings fell to 26 cents from 57 cents, undershooting analysts' expectations.
Earnings in the beef segment--the largest top-line contributor--were down 2.5% as revenue rose 16% on a 19% jump in average prices, but volume fell 2.3%. The chicken business swung to a loss despite 9.2% revenue growth, and volume rose 3.7% with 5.3% higher prices.
Corn
US corn futures ended lower, extending the market's recent downtrend as global economic fears prompt widespread cross-asset selling pressure caused by bearish economic and political factors. Corn prices were also anchored by an overall sluggish export sales pace. Futures fall to a 7-week low, with December corn settling below $6/bushel at $5.97 3/4 while March fell 13c to $6.05.
Wheat
US wheat futures closed lower, succumbing to the broader-based selling that filtered across asset classes. Global economic fears associated by European debt and the failure of the US supercommittee to agree on a plan to reduce deficit levels encouraged traders to reduce risk exposure. Poor export demand added to the bearish theme. However, hard-red winter wheat futures in Kansas City did pare losses, briefly trading higher on worries about dryness issues for crops in the southern Plains. CBOT March wheat ended down 6 3/4c at $5.91 1/2 a bushel as KCBT March dropped 1 1/4c to $6.78 and MGEX December dropped 12 3/4c to $8.62 1/2.
Rice
US rice futures fell, falling to 4 1/2 month lows. General weakness across broader asset classes encouraged traders to reduce risk exposure in unison with the declines seen amid other grain futures, analysts say. CBOT Jan Rice ended down 22 1/2c, or 1.5%, to $14.45 1/2/hundredweight.
Corn, wheat slip as euro zone crisis weighs on market
KUALA LUMPUR, Nov 21 (Reuters) - U.S. corn declined for a fourth day because of euro zone debt worries and increased supply as the United States harvested its crop, and other food grains also fell as the global uncertainty kept investors away from riskier assets.
"The European debt crisis means investors are putting money into lower-risk assets, which are not commodities," said Malcolm Bartholomaeus, a senior grains analyst at consultancy Profarmer Grain in Melbourne.
Algeria close to breaking grain import record
ALGIERS, Nov 20 (Reuters) - Algeria is this year close to breaking its all-time record for wheat imports, customs data showed on Sunday, after the government, worried about unrest in the wake of the "Arab Spring" uprisings, embarked on a grain buying spree.
The data seen by Reuters showed total wheat imports were 6.35 million tonnes in the January-October period of this year, up 40.5 percent on the same period in 2010.
Rain to slow final corn harvest in Ohio
CHICAGO, Nov 18 (Reuters) - Showers early next week will slow the final harvest of corn in Ohio and crop-friendly rains are expected next week in the Plains hard red winter wheat belt, an agricultural meteorologist said on Friday.
"Showers in the first half of next week will keep late harvest slow in Ohio and the rains could cause flooding in the northern Delta," said Joel Widenor, meteorologist for Commodity Weather Group.
Weather favours Russia crop planting, hard on Ukraine
KIEV, Nov 18 (Reuters) - Favourable weather is laying the foundation for Russia to dominate the regional grain export market again next season while a disastrous autumn in Ukraine is leaving farmers with tough choices over how make up for damaged winter sowings.
Russia, which plans to harvest around 100 million tonnes of grain this year, reported perfect weather conditions for its winter grains, looking forward to a second record export season in a row in the 2012/13 season.
Agribusiness Fund Goes Farther Afield For Harvest
As the global population continues to grow and investors' interest in agriculture expands, Adam Patti says it is good to stay small. His agriculture ETF, the IQ Global Agribusiness Small Cap fund, bypasses the largest, household names in the sector, such as Archer Daniels Midland, Monsanto Co., and Mosaic Co. Instead, the fund's portfolio is filled with names that Patti admits most investors have never heard of. In doing so, the fund offers a different path to diversify and invest in "hidden gems," said Patti, founder and CEO of Index IQ. Investors aren't following them, analysts aren't covering them. "These are the companies those in the large-cap space are looking to acquire," he said. But Patti isn't just awaiting a one-time pop, and said small-cap funds tend to outperform large caps.
The fund started in March, arriving in the midst of a global boom in agriculture, fueled by rising populations and income levels in emerging markets such as China, where people are eating more meat, and by substandard crops and biofuel demand. That has sent prices for crops and livestock soaring, boosting the profile for companies in fertilizer, farm equipment, seed and meat production. But as investors flock to large agribusiness companies and funds such as the Market Vectors Agribusiness ETF (MOO) -- the dominant agriculture-related mutual fund -- some of the benefits of diversification are lost, Patti said. "When people want to play the theme, they pour billions of dollars into ADM," he said. Meanwhile, smaller companies can be overlooked and undervalued, he said.
The fund corresponds to the IQ Global Agribusiness Small Cap Index, which was created in February. Patti said he doesn't expect investors to invest in his fund as opposed to Market Vectors Agribusiness, but to invest in both as part of a well-rounded approach to the agriculture sector. Compared to Market Vectors Agribusiness, the "800-pound gorilla," CROP is just a "spec on the radar," said Morningstar analyst Abraham Bailin said. It has $37 million in assets, compared to $5.7 billion for MOO. But Bailin said investors could see a good chance to diversify by investing in the IQ Global Agribusiness Small Cap fund and its roster of smaller companies. He said the largest companies in agriculture are often involved in chemicals and more exposed to energy prices, making them less of a pure play.
While the fund has outperformed Market Vectors Agribusiness since its inception, "neither one of these are yield plays," Patti said. The nascent fund has posted a three-month return of 0.22%, versus negative 4.5% for the world stock category, according to Morningstar data. Market Vectors Agribusiness has a three-month return of negative 0.15%, but both MOO and CROP have lagged the Standard and Poors' three-month return of 7.2%. Analysts have touted agriculture investments as a hedge against inflation, and as a way to invest in a global population expected to balloon to 9 billion by mid-century. "The agriculture story, regardless of how you play it, is the story in the next 10 years," Patti said. About 20% of CROP's holdings are in emerging markets in Asia, which is central to the growth story in agriculture. Another 23% are in Japan, and 32% of the holdings are in North America.
While many of the holdings would be considered obscure to the typical North American investor, its top holdings -- and top performers -- are relatively well-known. The largest holding is Tractor Supply Corp. (TSCO), a farm supply company that is broadly exposed to agriculture and has had a 49.9% return year-to-date, according to Morningstar data. Another large holding, Smithfield Foods (SFD), has surged thanks to a booming export market for pork, particularly to China. It has posted returns of 12.6% year-to-date. Many of the fund's laggards have been foreign companies, such as China Modern Dairy Holdings Ltd., which comprises 1.6% of the portfolio and has lost 25.4% year-to-date, according to Morningstar data.
Asia Rice Prices May Rise Due To Tight Supply
Asian rice prices will likely rise this month as supply continues being squeezed in Thailand, the world's largest exporter, though sales by India and Pakistan will cap gains, trading executives said. "Strain is beginning to show in the market as the government steps up purchases at the guaranteed price," a Singapore-based exporter said. Keeping a pre-election promise, the Thai government is buying unmilled rice, or paddy from growers at THB15,000 a metric ton, while the market price is THB10,000 a ton or lower. Thai rice prices have increased by around $20/ton so far this month because the government's price has now become a benchmark, said Chookiat Ophaswongse, Honorary President, Thai Rice Exporters Association. Thai 5% broken white rice is now being offered around $615/ton, free-on-board and 25% broken around $580/ton. Vietnamese rice grades are mostly between $500-$550/ton, FOB. However there aren't many buyers at current price levels.
Due to the floods and high prices, hardly any fresh sales are taking place, said Christophe Cousin, managing director of Prasert & Sons, a Thailand-based rice brokerage. Thai rice exports are likely to fall to 500,000 tons or lower this month compared with 628,000 tons in October and an average 1.0 million tons each month during the first half of 2011. Some of this shortfall in Thai supply is being met by sales from India and Pakistan, where export cargoes are cheaper by as much as $200/ton, on an FOB basis. Last week, Indonesia, the world's largest rice importer, purchased 250,000 tons from private Indian companies at $483/ton, basis cost and freight. This marks a paradigm shift in Indonesia's rice import strategy and also shows pragmatism, because Thai and Vietnam rice is costlier, a Singapore-based exporter said. If the quality is found acceptable, it may open the door for Indian rice in Jakarta permanently, another trader said.
India has already contracted sales of more than 1.0 million tons ordinary, or non-Basmati rice since allowing shipments in September. Sales from the India are definitely a boon for buyers in Asia and Africa because its absence could have made rice even costlier, a trader in Bangkok said. However, analysts point out that India has limited infrastructure and it is difficult for monthly exports to exceed 500,000 tons. India's 5% and 25% broken white rice is being offered around $440/ton and $385/ton, FOB. Prices have already bottomed out and a further downward correction is unlikely.
ICE cocoa sets 2-1/2 year low, sugar rebounds
LONDON, Nov 21 (Reuters) - ICE cocoa futures dipped to a 2-1/2 year low in early trade on Monday as the deepening economic crisis combined with bearish market fundamentals to drive prices lower.
Arabica coffee futures also eased while raw sugar rebounded from the prior session's five-month low.
India again puts off meeting on sugar export to Tuesday
NEW DELHI, Nov 21 (Reuters) - India has again put off to Tuesday a meeting to consider allowing a first tranche of sugar exports, government sources said, sending domestic prices down as traders worried ministers could not agree on the quantity for overseas sales.
Earlier, government sources had said a panel of ministers, empowered to permit exports, was scheduled to meet at 3.45 pm (1015 GMT) on Monday.
Brazil sugar output seen up in 2012/13-Kingsman
SAO PAULO, Nov 20 (Reuters) - Sugar output in centre-south Brazil is expected to rise to 32.5 million tonnes in 2012/13, some 2 million tonnes more than in 2011/12, Jonathan Kingsman, managing director of consultancy Kingsman SA, said on Sunday.
He told Reuters that he expected cane output in centre-south Brazil, the main growing region of the world's No. 1 sugar producer, to stand at 515 million tonnes in 2012/13.
China could import sugar from India -ISO
NEW DELHI, Nov 21 (Reuters) - China, set to resume sugar imports to shore up depleted stocks, could buy the sweetener from India, which is soon likely to permit this year's first tranche of overseas sales, the chief of the International Sugar Organization (ISO) said.
"It makes sense for both India and China to tie up some trade deals," ISO Executive Director Peter Baron told Reuters in an interview.
Brazil sugar losing competitiveness-Kingsman
SAO PAULO, Nov 20 (Reuters) - Brazil is losing its competitive advantage as a sugar producer because of rising costs, creating opportunities for beet growers like Russia and reducing world sugar trade, a senior analyst said on Sunday.
Jonathan Kingsman, managing director of consultancy Kingsman SA, told Reuters that Brazil, the world's No. 1 sugar producer and exporter, now produced sugar at a cost of 18-22 cents a lb, up from around 4 cents a lb in the 1990s.
Brazil Sugar Week to focus on competitiveness
SAO PAULO, Nov 20 (Reuters) - Brazil's rising costs of sugar production and the challenge of how to help the domestic ethanol industry meet strong biofuel demand will be key themes of Brazil Sugar Week starting on Monday.
The events this week will bring together several hundred traders, brokers, fund managers, analysts and industry leaders from around the world for conferences and seminars on sugar and ethanol culminating in an industry dinner on Thursday.
Dryness fears ease as rain soaks Brazil coffee
BRASILIA, Nov 18 (Reuters) - Concerns about overly-dry weather in the early stages of the development of Brazil's coffee crop have eased after good showers this week that look set to continue, a forecaster and agronomist said.
Trees had begun shedding some delicate blossoms due to dryness in the last few weeks after a burst of flowering that will essentially fix the size of the harvest in the 2012 crop in the world's No. 1 coffee grower.
Colombia '11 coffee output to miss goal but value up
BOGOTA, Nov 18 (Reuters) - Colombia's coffee growers federation said on Friday that bean production would be 8 million 60-kg bags this year, worse than earlier predictions about the impact of heavy rains on output.
This is the third consecutive year that coffee production in the world's top producer of high-quality Arabica beans will fall below the federation's target as bad weather, fungus and a tree renovation program cut output.
Indonesia rubber exports seen falling in Q4-assoc
JAKARTA, Nov 18 (Reuters) - Indonesia's natural rubber exports in the fourth quarter are seen dropping to 500,000 tonnes, from more than 600,000 tonnes per quarter so far this year, on weaker demand from key consumers such as China, an industry official said on Friday.
Worries about slowing demand could lead growers in the world's second-biggest rubber producer to cut exports if prices keep falling, the country's rubber association said, ahead of a meeting at the end of this week by top producers to discuss the market.
Euro Coal-Prices steady, no trades seen
LONDON, Nov 18 (Reuters) - Prompt physical coal prices were broadly steady on Friday with no fresh trades reported.
Europe remains flush with coal and unless the weather turns sharply colder, utilities will not need much more spot material this winter.
"Yesterday and the day before there was some activity and traders today looked happy to sit the week out," one European dealer said. "A lot of people will be happy to sit the rest of the year out seeing as we are already in the middle of November."
US coal consumption fell 1 pct last week - Genscape
Nov 18 (Reuters) - U.S. coal consumption fell 1 percent last week and was down 8 percent from the same week a year ago, according to power industry data monitor Genscape.
Coal use swings up and down seasonally and varies from week to week and region to region, depending on electricity demand to run air-conditioners or power heaters.
Crude falls on fears U.S. deficit talks may fail
KUALA LUMPUR, Nov 21 (Reuters) - U.S. crude fell more than $1 and Brent crude declined on concerns that U.S. lawmakers will fail to agree on plans to reduce the nation's deficit.
"This might give Standard & Poor's an opportunity to cut ratings further," said Alvin Liew, a senior economist at UOB Bank Ltd. in Singapore.
Pakistan Oct fuel oil imports at 6-mth low
SINGAPORE, Nov 21 (Reuters) - Pakistan has imported less than 400,000 tonnes of fuel oil for October, its lowest volume in six months, as transport problems due to heavy flooding hit demand, official data showed on Monday.
The country's main buyer, Pakistan State Oil , also bought the lowest volumes, at 780,000 tonnes, for its usual three-month cycle, just about a month ago.
Japan Oct LNG import volume up 17.9 pct
TOKYO, Nov 21 (Reuters) - Japan's liquefied natural gas imports climbed by more than 10 percent from a year earlier for the sixth straight month in October, Ministry of Finance data showed on Monday, as gas-fired power generation continued to surge due to the Fukushima nuclear crisis.
Japan, the world's biggest LNG buyer, last month imported 17.9 percent more LNG than a year earlier as heightened public concerns about nuclear safety have kept any reactor taken offline for routine maintenance from restarting.
Oil Trades Near One-Week Low on European Crisis Concern, U.S. Stockpiles (Source: Bloomberg)
Oil traded near the lowest price in more than a week in New York as investors speculated that fuel demand may falter as economic growth in Europe stalls and supplies rise in the U.S. Futures were little changed after dropping for a third day yesterday. Growth in Germany, Europe’s largest economy, may slow next year, the Bundesbank said. A U.S. Energy Department report tomorrow may show oil and fuel supplies increased last week, according to a Bloomberg News survey. Saudi Arabian Oil Co. Chief Executive Officer Khalid Al-Falih said the world economy is at risk of a double-dip recession. “We think consumption in the U.S. is still very subdued,” said David Lennox, a resource analyst at Fat Prophets in Sydney, who previously forecast oil would trade from $85 to $95 a barrel. “Any economic slowdown in Europe impacts on crude demand. We see $80 being the floor.”
Crude oil for January delivery was at $96.83 a barrel, down 9 cents, in electronic trading on the New York Mercantile at 11:52 a.m. Sydney time. The contract slipped 75 cents yesterday, or 0.8 percent, to $96.92, the lowest settlement since Nov. 9. Prices are 19 percent higher than a year ago.
Iron Ore-Spot prices may retreat after rally, China rebar falls
SINGAPORE, Nov 21 (Reuters) - Iron ore may fall this week as the market takes a breather after a rally seen to have taken place too swiftly, with sluggish steel demand in top consumer China likely to curb buying of the raw material.
Iron ore with 62 percent iron content eased 0.1 percent to $147.40 a tonne on Friday, according to the Steel Index, ending a 14-day rally that was the commodity's longest winning streak.
10 daily steel output lowest since Nov 2010
BEIJING, Nov 18 (Reuters) - Daily crude steel output in China stood at 1.664 million tonnes in the first 10 days of November, its lowest since November 2010, latest data from the China Iron and Steel Association showed on Friday.
Since October, steel mills across the country have scheduled overhauls in order to shield themselves from falling prices and slowing demand.
China imported iron ore stocks at new high in wk to Nov 18
BEIJING, Nov 18 (Reuters) - Inventories of imported iron ore at major Chinese ports hit a record 98.09 million tonnes this week, up 1.9 percent from last week, figures from industry consultancy Mysteel showed on Friday.
Iron ore prices have rallied by about $30 since reaching a 22-month low of $117 per tonne in late October, with Chinese steel mills replenishing stocks for the winter.
Baltic index falls, fleet growth adding pressure
LONDON, Nov 18 (Reuhters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, turned negative on Friday as weaker sentiment and a build up of available vessels weighed on the market.
Brokers expect the shipping sector to see more turmoil in the coming months as a supply glut and growing economic gloom would keep earnings under pressure.
20111122 1007 Soy Oil & Palm Oil Related News.
Soybeans
US soybean futures fell to 13-month lows as the market was caught in the tailwinds of a broad-based risk-off trading environment. Fear of a global economic slowdown amid worries about European sovereign debt and the failure of the US supercommittee to reach agreement on a plan to help reduce the federal deficit encouraged traders to reduce risk exposure. Technical selling accelerated the declines, with selling gathering momentum after prices dipped below last week's lows. CBOT January soybeans end down 2 1/4c at $11.48/bushel.
Soybean Meal/Oil
Soy product futures dropped in unison with soybeans, falling on global economic jitters. Broader-based losses across asset classes spurred sellers, as traders worry about slowed economic growth, analysts say. CBOT Dec soymeal dropped $8.80 to $289.60/short ton, and Dec soyoil ended down 0.99c at 49.89 cents/pound.
Palm drops from 5-month top on gloomy global outlook
KUALA LUMPUR, Nov 21 (Reuters) - Malaysian palm oil dropped from a five-month high hit last week on concerns buying was overdone, while the euro zone debt crisis and an apparent failure by the U.S. politicians to agree on a deficit reduction plan also hurt sentiment.
"The market is divided between potentially bullish fundamentals and the overwhelming global economic scenario. But there is some profit-taking today as the market has been overdone," said a trader with a foreign commodities brokerage.
China state soy imports anger commercial buyers -paper
BEIJING, Nov 21 (Reuters) - Chinese government purchases of soybean for state reserves, which have pushed up Chicago Board of Trade (CBOT) prices , have angered some commercial buyers in the world's largest soy importer, according to a media report.
Sinograin, which manages state reserves, has since October purchased twice from United States, buying about 1.2 million tonnes. Its latest purchases pushed up CBOT prices 2 percent on November 16.
Argentine soy planting makes fast progress -Gov't
BUENOS AIRES, Nov 18 (Reuters) - Sowing of Argentina's 2011/12 soy advanced at a fast clip over the last week thanks to good soil moisture in the country's main farm areas, the government said in a report on Friday.
Farmers have planted 44 percent of the record 19 million hectares forecasted for soy this season, according to the government's weekly crop progress report. Planting advanced by 14 percentage points in the week through Thursday, outstripping last season's tempo by 2 percentage points.
US soybean futures fell to 13-month lows as the market was caught in the tailwinds of a broad-based risk-off trading environment. Fear of a global economic slowdown amid worries about European sovereign debt and the failure of the US supercommittee to reach agreement on a plan to help reduce the federal deficit encouraged traders to reduce risk exposure. Technical selling accelerated the declines, with selling gathering momentum after prices dipped below last week's lows. CBOT January soybeans end down 2 1/4c at $11.48/bushel.
Soybean Meal/Oil
Soy product futures dropped in unison with soybeans, falling on global economic jitters. Broader-based losses across asset classes spurred sellers, as traders worry about slowed economic growth, analysts say. CBOT Dec soymeal dropped $8.80 to $289.60/short ton, and Dec soyoil ended down 0.99c at 49.89 cents/pound.
Palm drops from 5-month top on gloomy global outlook
KUALA LUMPUR, Nov 21 (Reuters) - Malaysian palm oil dropped from a five-month high hit last week on concerns buying was overdone, while the euro zone debt crisis and an apparent failure by the U.S. politicians to agree on a deficit reduction plan also hurt sentiment.
"The market is divided between potentially bullish fundamentals and the overwhelming global economic scenario. But there is some profit-taking today as the market has been overdone," said a trader with a foreign commodities brokerage.
China state soy imports anger commercial buyers -paper
BEIJING, Nov 21 (Reuters) - Chinese government purchases of soybean for state reserves, which have pushed up Chicago Board of Trade (CBOT) prices , have angered some commercial buyers in the world's largest soy importer, according to a media report.
Sinograin, which manages state reserves, has since October purchased twice from United States, buying about 1.2 million tonnes. Its latest purchases pushed up CBOT prices 2 percent on November 16.
Argentine soy planting makes fast progress -Gov't
BUENOS AIRES, Nov 18 (Reuters) - Sowing of Argentina's 2011/12 soy advanced at a fast clip over the last week thanks to good soil moisture in the country's main farm areas, the government said in a report on Friday.
Farmers have planted 44 percent of the record 19 million hectares forecasted for soy this season, according to the government's weekly crop progress report. Planting advanced by 14 percentage points in the week through Thursday, outstripping last season's tempo by 2 percentage points.
20111122 1007 Soy Oil & Palm Oil Related News.
Soybeans
US soybean futures fell to 13-month lows as the market was caught in the tailwinds of a broad-based risk-off trading environment. Fear of a global economic slowdown amid worries about European sovereign debt and the failure of the US supercommittee to reach agreement on a plan to help reduce the federal deficit encouraged traders to reduce risk exposure. Technical selling accelerated the declines, with selling gathering momentum after prices dipped below last week's lows. CBOT January soybeans end down 2 1/4c at $11.48/bushel.
Soybean Meal/Oil
Soy product futures dropped in unison with soybeans, falling on global economic jitters. Broader-based losses across asset classes spurred sellers, as traders worry about slowed economic growth, analysts say. CBOT Dec soymeal dropped $8.80 to $289.60/short ton, and Dec soyoil ended down 0.99c at 49.89 cents/pound.
Palm drops from 5-month top on gloomy global outlook
KUALA LUMPUR, Nov 21 (Reuters) - Malaysian palm oil dropped from a five-month high hit last week on concerns buying was overdone, while the euro zone debt crisis and an apparent failure by the U.S. politicians to agree on a deficit reduction plan also hurt sentiment.
"The market is divided between potentially bullish fundamentals and the overwhelming global economic scenario. But there is some profit-taking today as the market has been overdone," said a trader with a foreign commodities brokerage.
China state soy imports anger commercial buyers -paper
BEIJING, Nov 21 (Reuters) - Chinese government purchases of soybean for state reserves, which have pushed up Chicago Board of Trade (CBOT) prices , have angered some commercial buyers in the world's largest soy importer, according to a media report.
Sinograin, which manages state reserves, has since October purchased twice from United States, buying about 1.2 million tonnes. Its latest purchases pushed up CBOT prices 2 percent on November 16.
Argentine soy planting makes fast progress -Gov't
BUENOS AIRES, Nov 18 (Reuters) - Sowing of Argentina's 2011/12 soy advanced at a fast clip over the last week thanks to good soil moisture in the country's main farm areas, the government said in a report on Friday.
Farmers have planted 44 percent of the record 19 million hectares forecasted for soy this season, according to the government's weekly crop progress report. Planting advanced by 14 percentage points in the week through Thursday, outstripping last season's tempo by 2 percentage points.
US soybean futures fell to 13-month lows as the market was caught in the tailwinds of a broad-based risk-off trading environment. Fear of a global economic slowdown amid worries about European sovereign debt and the failure of the US supercommittee to reach agreement on a plan to help reduce the federal deficit encouraged traders to reduce risk exposure. Technical selling accelerated the declines, with selling gathering momentum after prices dipped below last week's lows. CBOT January soybeans end down 2 1/4c at $11.48/bushel.
Soybean Meal/Oil
Soy product futures dropped in unison with soybeans, falling on global economic jitters. Broader-based losses across asset classes spurred sellers, as traders worry about slowed economic growth, analysts say. CBOT Dec soymeal dropped $8.80 to $289.60/short ton, and Dec soyoil ended down 0.99c at 49.89 cents/pound.
Palm drops from 5-month top on gloomy global outlook
KUALA LUMPUR, Nov 21 (Reuters) - Malaysian palm oil dropped from a five-month high hit last week on concerns buying was overdone, while the euro zone debt crisis and an apparent failure by the U.S. politicians to agree on a deficit reduction plan also hurt sentiment.
"The market is divided between potentially bullish fundamentals and the overwhelming global economic scenario. But there is some profit-taking today as the market has been overdone," said a trader with a foreign commodities brokerage.
China state soy imports anger commercial buyers -paper
BEIJING, Nov 21 (Reuters) - Chinese government purchases of soybean for state reserves, which have pushed up Chicago Board of Trade (CBOT) prices , have angered some commercial buyers in the world's largest soy importer, according to a media report.
Sinograin, which manages state reserves, has since October purchased twice from United States, buying about 1.2 million tonnes. Its latest purchases pushed up CBOT prices 2 percent on November 16.
Argentine soy planting makes fast progress -Gov't
BUENOS AIRES, Nov 18 (Reuters) - Sowing of Argentina's 2011/12 soy advanced at a fast clip over the last week thanks to good soil moisture in the country's main farm areas, the government said in a report on Friday.
Farmers have planted 44 percent of the record 19 million hectares forecasted for soy this season, according to the government's weekly crop progress report. Planting advanced by 14 percentage points in the week through Thursday, outstripping last season's tempo by 2 percentage points.
Monday, November 21, 2011
20111121 1810 FCPO EOD Daily Chart Study.
Bollinger band reading : pullback correction upside biased.
MACD Histrogram : weakening, buyer taking profit.
Support : 3200, 3150, 3100, 3070 level.
Resistance : 3250, 3270, 3300, 3350 level.
Comment :
FCPO closed recorded loss with declining volume changed hand while Friday night soy oil closed recorded loss and currently trading weaker while crude oil price slumping lower.
Dissapointing export data that show slowing down and marginally improvement released by both cargo surveyors and poor global equity markets performance resulted broad commodities and FCPO price to trade lower on fear of slowing down demand.
Daily chart formed a down doji bar candle closed below upper Bollinger band level after market opened lower, edge up higher and fall further downward followed by after lunch recovery effort back into positive zone and plunge downward again to closed near the low of the day.
Technical study suggesting a pullback correction upside biased market development testing support and resistance.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
20111121 1732 FKLI EOD Daily Chart Study.
Bollinger band reading : little downside biased with possible pullback correction.
MACD Histrogram : falling, seller taking exposure.
Support : 1400, 1395, 1385, 1375 level.
Resistance : 1420, 1425, 1435, 1440 level.
Comment :
FKLI closed recorded massive loss with increasing volume exchanged doing huge 19.5 points discount compare to cash market that closed lower. Overnight U.S. markets ended mixed and today Asia markets closed lower while European markets currently trading in negative territory.
Fear of unsolve European debts problem may further affect American banks, U.S. congress may fail to reach agreement to reduce the nation’s budget deficit and Singapore trade minister statement of slower economy growth resulted substantial sell down in global equity markets.
Daily chart formed a down bar candle closed outside lower Bollinger band after market opened gap down, slide downward gradually followed by last one and a half hour selling activities pressed market to closed near the low of the day.
Technical chart reading adjusted to suggesting a little downside biased market development with possible technical rebound.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.
20111121 1701 Regional Markets EOD Daily Chart Study.
DJIA chart reading : side way range bound.
Hang Seng chart reading : little downside biased with possible pullback.
KLCI chart reading : little downside biased with possible pullback.
20111121 1641 Global Market & Commodities Related News.
FOREX-Euro subdued but stable, Aussie slips
TOKYO Nov 21 (Reuters) - The euro held steady in Asia on Monday after a short-squeeze rally late last week as news of an election victory for Spain's centre-right opposition was greeted with cautious optimism.
"Essentially the euro needs a stronger European economy so as to reduce fiscal deficits. For that to happen, the euro has to fall," said Minori Uchida, a senior analyst at Bank of Tokyo Mitsubishi UFJ.
Asia Stocks Fall on U.S. Budget Impasse, Weaker Economic Growth (Bloomberg)
Asian stocks fell for a fifth day, the longest streak in almost four months, amid concern economic growth in Asia is slowing and U.S. lawmakers may fail to reduce the nation’s budget deficit. Genting Singapore Plc (GENS) and Capitaland Ltd. (CAPL) fell more than 1.6 percent, leading declines in the Straits Times Index as Singapore’s trade ministry said economic growth may slow next year. Fanuc Corp., which makes industrial robots, lost 2.1 percent after Japanese exports fell for the first time in three months. Elpida Memory Inc. (6665), the world’s third-largest memory- chip maker, sank 7.3 percent after an industry report showed Japan’s chip-equipment orders fell 33 percent from a year ago.
The MSCI Asia Pacific Index retreated 1.1 percent to 112.94 at 3:46 p.m. in Tokyo. The gauge has lost more than 1 percent in three of the last five trading sessions. The Straits Times Index (FSSTI) declined 0.4 percent, poised for the lowest close in a month. Hong Kong’s Hang Seng Index sank 1.4 percent and Japan’s Nikkei 225 Stock Average slipped 0.3 percent. “There’s likely to be a continuing impasse and people will focus on the stability of the U.S. politically,” said Tim Schroeders, who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “People will probably sit on the sideline and wait for clarity.”
Japan Exports Fall as China Sees World Slump (Bloomberg)
Japanese exports dropped more than forecast in October, Singapore said its growth may slow to 1 percent next year and China signaled the global economy faces an extended slide. The reports may raise pressure on policy makers in export- reliant Asia to implement further stimulus measures. A record of the Bank of Japan’s Oct. 27 meeting today showed one board member favored adding 10 trillion yen ($130 billion) in asset purchases, and Chinese Vice Premier Wang Qishan said his nation must adopt more “forward looking” and flexible monetary policy. “Things are going to get worse before they get better,” said Vishnu Varathan, a Mizuho Corporate Bank Ltd. economist in Singapore. “Export growth will slow across Asia and we may see financial shocks coming through. Asian policy makers are going to become stimulatory all over again.”
Asian shares fall, U.S. deficit deadlock weighs
TOKYO, Nov 21 (Reuters) - Asian shares fell as uncertainty remained over how euro zone leaders would respond to mounting funding difficulties for European banks, and an apparent failure by U.S. politicians to agree on deficit reduction hurt sentiment.
"It is a minor negative, there is a few questions to be asked -- do Moody's and Fitch for example move to downgrade the U.S.," said HSBC's head of global equity strategy Garry Evans.
Corn slips as U.S. debt plan, euro zone crisis weigh on market
KUALA LUMPUR, Nov 21 (Reuters) - U.S. corn and wheat slipped in early Asian trade as euro zone debt worries and a potential failure of a U.S. debt reduction plan offset optimism that the U.S. economy may rebound in the fourth quarter.
Wheat for December delivery fell 0.17 percent to $5.97-1/4 per bushel after tumbling 3.3 percent last week because of euro zone concerns and abundant global supplies.
Algeria close to breaking grain import record
ALGIERS, Nov 20 (Reuters) - Algeria is this year close to breaking its all-time record for wheat imports, customs data showed on Sunday, after the government, worried about unrest in the wake of the "Arab Spring" uprisings, embarked on a grain buying spree.
The data seen by Reuters showed total wheat imports were 6.35 million tonnes in the January-October period of this year, up 40.5 percent on the same period in 2010.
Argentine soy planting makes fast progress -Gov't
BUENOS AIRES, Nov 18 (Reuters) - Sowing of Argentina's 2011/12 soy advanced at a fast clip over the last week thanks to good soil moisture in the country's main farm areas, the government said in a report on Friday.
Farmers have planted 44 percent of the record 19 million hectares forecasted for soy this season, according to the government's weekly crop progress report. Planting advanced by 14 percentage points in the week through Thursday, outstripping last season's tempo by 2 percentage points.
Dryness fears ease as rain soaks Brazil coffee
BRASILIA, Nov 18 (Reuters) - Concerns about overly-dry weather in the early stages of the development of Brazil's coffee crop have eased after good showers this week that look set to continue, a forecaster and agronomist said.
Trees had begun shedding some delicate blossoms due to dryness in the last few weeks after a burst of flowering that will essentially fix the size of the harvest in the 2012 crop in the world's No. 1 coffee grower.
Colombia '11 coffee output to miss goal but value up
BOGOTA, Nov 18 (Reuters) - Colombia's coffee growers federation said on Friday that bean production would be 8 million 60-kg bags this year, worse than earlier predictions about the impact of heavy rains on output.
This is the third consecutive year that coffee production in the world's top producer of high-quality Arabica beans will fall below the federation's target as bad weather, fungus and a tree renovation program cut output.
Brazil sugar losing competitiveness-Kingsman
SAO PAULO, Nov 20 (Reuters) - Brazil is losing its competitive advantage as a sugar producer because of rising costs, creating opportunities for beet growers like Russia and reducing world sugar trade, a senior analyst said on Sunday.
Jonathan Kingsman, managing director of consultancy Kingsman SA, told Reuters that Brazil, the world's No. 1 sugar producer and exporter, now produced sugar at a cost of 18-22 cents a lb, up from around 4 cents a lb in the 1990s.
US gov't a tenuous beachhead for biofuel firms
SAN FRANCISCO, Nov 20 (Reuters) - The U.S. military has emerged as a key ally for fledgling producers of non-food-based biofuels, who find themselves threatened by looming budget cuts and growing political hostility to renewable energy funding.
A U.S. Navy plan to cut its fossil fuel use in half by 2020 is only part of the story.
Italy 2011 biodiesel output seen down 32 pct
MILAN, Nov 18 (Reuters) - Biodiesel output in Italy, a major producer in the European Union, is set to fall to 500,000 tonnes at best this year, a 32 percent drop from 2010, hit by soaring inflows of cheaper imports, a senior industry official said on Friday.
The Italian industry produced 211,234 tonnes of biodiesel in the first six months of this year and second-half output is expected to be broadly similar, Maria Rosaria Di Somma, director general of the industry body Assocostieri-Unione Produttori Biocarburanti, told Reuters.
Gasoil shortage a ray of hope for Europe refiners
LONDON, Nov 18 (Reuters) - Embattled European refiners are heading for a rare season of decent profits this winter, despite loss-making gasoline, thanks to a roaring gasoil market.
The refining margin for making gasoil, or crack, is near 3-year highs as Russian exports are crippled by domestic regulations, U.S. exports are hitting their limit and the Asian market is struggling to source its own supplies.
Brent above $107, Mideast tension heightens supply concerns
KUALA LUMPUR, Nov 21 (Reuters) - Brent crude futures edged above $107 a barrel on fears that tensions over Iran's nuclear programme, and clashes in Egypt and Syria, may disrupt Middle Eastern output as demand for fuel rises ahead of the Northern
Hemisphere winter.
"At this point, the geopolitics is more important to the market because it's happening at a time when fundamentals show it's a tight market amid the peak demand season," said Gordon Kwan, head of energy research at Mirae Asset Securities Ltd. in Hong Kong.
Japan Oct crude oil import volume up 1.1 pct
TOKYO, Nov 21 (Reuters) - Japan's crude oil imports rose 1.1 percent in October from the same month a year earlier, while liquefied natural gas imports climbed more than 10 percent for the sixth straight month as gas-fired power generation continued to surge following the March earthquake, Ministry of Finance data showed on Monday.
Japan, the world's biggest LNG buyer, imported 17.9 percent more LNG from a year earlier at 6.16 million tonnes last month, marking the highest year-on-year increase since August, when the country imported 18.2 percent more LNG at a record 7.55 million tonnes.
Saudi sees balanced oil market as OPEC meeting nears
RIYADH, Nov 20 (Reuters) - The global oil market looks balanced, Saudi oil minister Ali al-Naimi indicated on Sunday, while the secretary general of the Organization of the Petroleum Exporting Countries said some producers need to cut back as Libyan output rebounds.
Speaking at the same conference in the Saudi capital with less than a month to go before OPEC meets, the head of the International Energy Agency (IEA) reiterated the major consumer group's concern that stubbornly high oil prices and tight supplies could harm fragile global economic growth.
Most China rare earth prices down on weak demand
SHANGHAI, Nov 18 (Reuters) - Prices of most Chinese rare earth slipped from a week ago on weak demand.
"A lack of confidence in the government's efforts to consolidate the rare earth mining industry is also stirring doubts that demand can be stimulated," said research firm Shanghai Metal Markets in a recent note.
U.S. deficit deadlock, euro zone weigh on copper
SHANGHAI, Nov 21 (Reuters) - Copper fell, weighed down by technical factors and the apparent failure of U.S. politicians to agree on trimming the country's deficit, while Spain's election of an austerity-minded government failed to ally fears about the euro zone's health.
"Copper will go through a period of consolidation within a bear market, which means more downside risks ahead in the longer term. The Moving Average Convergence-Divergence (MACD) technical chart for LME copper shows a bearish trend developing, which is not helped by the absence of positive news out of the euro zone and United States," said CIFCO Futures analyst Zhou Jie.
Halt in Indonesian tin exports hitting U.S. markets
NEW YORK, Nov 18 (Reuters) - The suspension of tin ingot export shipments from Indonesian smelters last month is already creating a supply crunch for U.S. consumers, lifting premiums for higher-quality metal, which is expected to become harder to find.
Nearly in its seventh week, the shipping ban from the world's largest exporter is expected to last until the end of the year, leaving many U.S. buyers with few other reliable supply lines and mounting concerns about next year's supply contracts, market participants said.
Taiwan's China Steel to ask for iron ore delivery delays
TAIPEI, Nov 18 (Reuters) - China Steel , Taiwan's top steelmaker, plans to ask miners BHP Billiton and Rio Tinto to delay iron ore and coking coal deliveries as a slower global economy prompts it to cut output, a senior company official said.
Sluggish demand has forced steelmakers across Asia to curb production, although China Steel may be among the first to have sought a delay in raw material shipments.
Japan Oct copper cable shipments rise 3 pct yr/yr
TOKYO, Nov 18 (Reuters) - Japanese copper wire and cable shipments rose 3 percent in October from a year earlier to an estimated 60,700 tonnes, an industry body said on Friday.
Japan's appetite for copper, often seen as a gauge of economic activity and already weak in the wake of the global financial crisis, took a fresh beating after the March earthquake prompted user industries to reduce domestic production.
Australian govt wins key support for mine tax
CANBERRA, Nov 21 (Reuters) - Australia's minority government won support from two key independents for its controversial 30 percent tax on iron ore and coal mines on Monday, meaning the laws should have the numbers to pass through parliament.
Independents Tony Windsor and Rob Oakeshott said they would support the mining tax laws in a vote in return for government guarantees to protect the environment against coal seam gas exploration and safeguard rural water resources.
METALS-U.S. deficit deadlock, euro zone weigh on copper
SHANGHAI, Nov 21 (Reuters) - Copper fell on Monday, weighed down by technical factors and the apparent failure of U.S. politicians to agree on trimming the country's deficit, while Spain's election of an austerity-minded government failed to ally fears about the euro zone's health.
"Copper will go through a period of consolidation within a bear market, which means more downside risks ahead in the longer term. The Moving Average Convergence-Divergence (MACD) technical chart for LME copper shows a bearish trend developing, which is not helped by the absence of positive news out of the euro zone and United States," said CIFCO Futures analyst Zhou Jie.
PRECIOUS-Gold steady; caution prevails after Spain election
SINGAPORE, Nov 21 (Reuters) - Gold traded steady on Monday after its biggest weekly loss since September, as investors remained cautious even after Spain's centre-right opposition won a landslide victory in the election and is expected to launch drastic austerity measures.
"We still have not seen the light at the end of the tunnel yet," said Ong Yi Ling, an analyst at Phillip Futures. "We will continue to have headlines from Europe to dominate the sentiment in the market."
Gold steady; caution prevails after Spain election
SINGAPORE, Nov 21 (Reuters) - Gold traded steady after its biggest weekly loss since September, as investors remained cautious even after Spain's centre-right opposition won a landslide victory in the election and is expected to launch drastic austerit measures.
"We still have not seen the light at the end of the tunnel yet," said Ong Yi Ling, an analyst at Phillip Futures.
TOKYO Nov 21 (Reuters) - The euro held steady in Asia on Monday after a short-squeeze rally late last week as news of an election victory for Spain's centre-right opposition was greeted with cautious optimism.
"Essentially the euro needs a stronger European economy so as to reduce fiscal deficits. For that to happen, the euro has to fall," said Minori Uchida, a senior analyst at Bank of Tokyo Mitsubishi UFJ.
Asia Stocks Fall on U.S. Budget Impasse, Weaker Economic Growth (Bloomberg)
Asian stocks fell for a fifth day, the longest streak in almost four months, amid concern economic growth in Asia is slowing and U.S. lawmakers may fail to reduce the nation’s budget deficit. Genting Singapore Plc (GENS) and Capitaland Ltd. (CAPL) fell more than 1.6 percent, leading declines in the Straits Times Index as Singapore’s trade ministry said economic growth may slow next year. Fanuc Corp., which makes industrial robots, lost 2.1 percent after Japanese exports fell for the first time in three months. Elpida Memory Inc. (6665), the world’s third-largest memory- chip maker, sank 7.3 percent after an industry report showed Japan’s chip-equipment orders fell 33 percent from a year ago.
The MSCI Asia Pacific Index retreated 1.1 percent to 112.94 at 3:46 p.m. in Tokyo. The gauge has lost more than 1 percent in three of the last five trading sessions. The Straits Times Index (FSSTI) declined 0.4 percent, poised for the lowest close in a month. Hong Kong’s Hang Seng Index sank 1.4 percent and Japan’s Nikkei 225 Stock Average slipped 0.3 percent. “There’s likely to be a continuing impasse and people will focus on the stability of the U.S. politically,” said Tim Schroeders, who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “People will probably sit on the sideline and wait for clarity.”
Japan Exports Fall as China Sees World Slump (Bloomberg)
Japanese exports dropped more than forecast in October, Singapore said its growth may slow to 1 percent next year and China signaled the global economy faces an extended slide. The reports may raise pressure on policy makers in export- reliant Asia to implement further stimulus measures. A record of the Bank of Japan’s Oct. 27 meeting today showed one board member favored adding 10 trillion yen ($130 billion) in asset purchases, and Chinese Vice Premier Wang Qishan said his nation must adopt more “forward looking” and flexible monetary policy. “Things are going to get worse before they get better,” said Vishnu Varathan, a Mizuho Corporate Bank Ltd. economist in Singapore. “Export growth will slow across Asia and we may see financial shocks coming through. Asian policy makers are going to become stimulatory all over again.”
Asian shares fall, U.S. deficit deadlock weighs
TOKYO, Nov 21 (Reuters) - Asian shares fell as uncertainty remained over how euro zone leaders would respond to mounting funding difficulties for European banks, and an apparent failure by U.S. politicians to agree on deficit reduction hurt sentiment.
"It is a minor negative, there is a few questions to be asked -- do Moody's and Fitch for example move to downgrade the U.S.," said HSBC's head of global equity strategy Garry Evans.
Corn slips as U.S. debt plan, euro zone crisis weigh on market
KUALA LUMPUR, Nov 21 (Reuters) - U.S. corn and wheat slipped in early Asian trade as euro zone debt worries and a potential failure of a U.S. debt reduction plan offset optimism that the U.S. economy may rebound in the fourth quarter.
Wheat for December delivery fell 0.17 percent to $5.97-1/4 per bushel after tumbling 3.3 percent last week because of euro zone concerns and abundant global supplies.
Algeria close to breaking grain import record
ALGIERS, Nov 20 (Reuters) - Algeria is this year close to breaking its all-time record for wheat imports, customs data showed on Sunday, after the government, worried about unrest in the wake of the "Arab Spring" uprisings, embarked on a grain buying spree.
The data seen by Reuters showed total wheat imports were 6.35 million tonnes in the January-October period of this year, up 40.5 percent on the same period in 2010.
Argentine soy planting makes fast progress -Gov't
BUENOS AIRES, Nov 18 (Reuters) - Sowing of Argentina's 2011/12 soy advanced at a fast clip over the last week thanks to good soil moisture in the country's main farm areas, the government said in a report on Friday.
Farmers have planted 44 percent of the record 19 million hectares forecasted for soy this season, according to the government's weekly crop progress report. Planting advanced by 14 percentage points in the week through Thursday, outstripping last season's tempo by 2 percentage points.
Dryness fears ease as rain soaks Brazil coffee
BRASILIA, Nov 18 (Reuters) - Concerns about overly-dry weather in the early stages of the development of Brazil's coffee crop have eased after good showers this week that look set to continue, a forecaster and agronomist said.
Trees had begun shedding some delicate blossoms due to dryness in the last few weeks after a burst of flowering that will essentially fix the size of the harvest in the 2012 crop in the world's No. 1 coffee grower.
Colombia '11 coffee output to miss goal but value up
BOGOTA, Nov 18 (Reuters) - Colombia's coffee growers federation said on Friday that bean production would be 8 million 60-kg bags this year, worse than earlier predictions about the impact of heavy rains on output.
This is the third consecutive year that coffee production in the world's top producer of high-quality Arabica beans will fall below the federation's target as bad weather, fungus and a tree renovation program cut output.
Brazil sugar losing competitiveness-Kingsman
SAO PAULO, Nov 20 (Reuters) - Brazil is losing its competitive advantage as a sugar producer because of rising costs, creating opportunities for beet growers like Russia and reducing world sugar trade, a senior analyst said on Sunday.
Jonathan Kingsman, managing director of consultancy Kingsman SA, told Reuters that Brazil, the world's No. 1 sugar producer and exporter, now produced sugar at a cost of 18-22 cents a lb, up from around 4 cents a lb in the 1990s.
US gov't a tenuous beachhead for biofuel firms
SAN FRANCISCO, Nov 20 (Reuters) - The U.S. military has emerged as a key ally for fledgling producers of non-food-based biofuels, who find themselves threatened by looming budget cuts and growing political hostility to renewable energy funding.
A U.S. Navy plan to cut its fossil fuel use in half by 2020 is only part of the story.
Italy 2011 biodiesel output seen down 32 pct
MILAN, Nov 18 (Reuters) - Biodiesel output in Italy, a major producer in the European Union, is set to fall to 500,000 tonnes at best this year, a 32 percent drop from 2010, hit by soaring inflows of cheaper imports, a senior industry official said on Friday.
The Italian industry produced 211,234 tonnes of biodiesel in the first six months of this year and second-half output is expected to be broadly similar, Maria Rosaria Di Somma, director general of the industry body Assocostieri-Unione Produttori Biocarburanti, told Reuters.
Gasoil shortage a ray of hope for Europe refiners
LONDON, Nov 18 (Reuters) - Embattled European refiners are heading for a rare season of decent profits this winter, despite loss-making gasoline, thanks to a roaring gasoil market.
The refining margin for making gasoil, or crack, is near 3-year highs as Russian exports are crippled by domestic regulations, U.S. exports are hitting their limit and the Asian market is struggling to source its own supplies.
Brent above $107, Mideast tension heightens supply concerns
KUALA LUMPUR, Nov 21 (Reuters) - Brent crude futures edged above $107 a barrel on fears that tensions over Iran's nuclear programme, and clashes in Egypt and Syria, may disrupt Middle Eastern output as demand for fuel rises ahead of the Northern
Hemisphere winter.
"At this point, the geopolitics is more important to the market because it's happening at a time when fundamentals show it's a tight market amid the peak demand season," said Gordon Kwan, head of energy research at Mirae Asset Securities Ltd. in Hong Kong.
Japan Oct crude oil import volume up 1.1 pct
TOKYO, Nov 21 (Reuters) - Japan's crude oil imports rose 1.1 percent in October from the same month a year earlier, while liquefied natural gas imports climbed more than 10 percent for the sixth straight month as gas-fired power generation continued to surge following the March earthquake, Ministry of Finance data showed on Monday.
Japan, the world's biggest LNG buyer, imported 17.9 percent more LNG from a year earlier at 6.16 million tonnes last month, marking the highest year-on-year increase since August, when the country imported 18.2 percent more LNG at a record 7.55 million tonnes.
Saudi sees balanced oil market as OPEC meeting nears
RIYADH, Nov 20 (Reuters) - The global oil market looks balanced, Saudi oil minister Ali al-Naimi indicated on Sunday, while the secretary general of the Organization of the Petroleum Exporting Countries said some producers need to cut back as Libyan output rebounds.
Speaking at the same conference in the Saudi capital with less than a month to go before OPEC meets, the head of the International Energy Agency (IEA) reiterated the major consumer group's concern that stubbornly high oil prices and tight supplies could harm fragile global economic growth.
Most China rare earth prices down on weak demand
SHANGHAI, Nov 18 (Reuters) - Prices of most Chinese rare earth slipped from a week ago on weak demand.
"A lack of confidence in the government's efforts to consolidate the rare earth mining industry is also stirring doubts that demand can be stimulated," said research firm Shanghai Metal Markets in a recent note.
U.S. deficit deadlock, euro zone weigh on copper
SHANGHAI, Nov 21 (Reuters) - Copper fell, weighed down by technical factors and the apparent failure of U.S. politicians to agree on trimming the country's deficit, while Spain's election of an austerity-minded government failed to ally fears about the euro zone's health.
"Copper will go through a period of consolidation within a bear market, which means more downside risks ahead in the longer term. The Moving Average Convergence-Divergence (MACD) technical chart for LME copper shows a bearish trend developing, which is not helped by the absence of positive news out of the euro zone and United States," said CIFCO Futures analyst Zhou Jie.
Halt in Indonesian tin exports hitting U.S. markets
NEW YORK, Nov 18 (Reuters) - The suspension of tin ingot export shipments from Indonesian smelters last month is already creating a supply crunch for U.S. consumers, lifting premiums for higher-quality metal, which is expected to become harder to find.
Nearly in its seventh week, the shipping ban from the world's largest exporter is expected to last until the end of the year, leaving many U.S. buyers with few other reliable supply lines and mounting concerns about next year's supply contracts, market participants said.
Taiwan's China Steel to ask for iron ore delivery delays
TAIPEI, Nov 18 (Reuters) - China Steel , Taiwan's top steelmaker, plans to ask miners BHP Billiton and Rio Tinto to delay iron ore and coking coal deliveries as a slower global economy prompts it to cut output, a senior company official said.
Sluggish demand has forced steelmakers across Asia to curb production, although China Steel may be among the first to have sought a delay in raw material shipments.
Japan Oct copper cable shipments rise 3 pct yr/yr
TOKYO, Nov 18 (Reuters) - Japanese copper wire and cable shipments rose 3 percent in October from a year earlier to an estimated 60,700 tonnes, an industry body said on Friday.
Japan's appetite for copper, often seen as a gauge of economic activity and already weak in the wake of the global financial crisis, took a fresh beating after the March earthquake prompted user industries to reduce domestic production.
Australian govt wins key support for mine tax
CANBERRA, Nov 21 (Reuters) - Australia's minority government won support from two key independents for its controversial 30 percent tax on iron ore and coal mines on Monday, meaning the laws should have the numbers to pass through parliament.
Independents Tony Windsor and Rob Oakeshott said they would support the mining tax laws in a vote in return for government guarantees to protect the environment against coal seam gas exploration and safeguard rural water resources.
METALS-U.S. deficit deadlock, euro zone weigh on copper
SHANGHAI, Nov 21 (Reuters) - Copper fell on Monday, weighed down by technical factors and the apparent failure of U.S. politicians to agree on trimming the country's deficit, while Spain's election of an austerity-minded government failed to ally fears about the euro zone's health.
"Copper will go through a period of consolidation within a bear market, which means more downside risks ahead in the longer term. The Moving Average Convergence-Divergence (MACD) technical chart for LME copper shows a bearish trend developing, which is not helped by the absence of positive news out of the euro zone and United States," said CIFCO Futures analyst Zhou Jie.
PRECIOUS-Gold steady; caution prevails after Spain election
SINGAPORE, Nov 21 (Reuters) - Gold traded steady on Monday after its biggest weekly loss since September, as investors remained cautious even after Spain's centre-right opposition won a landslide victory in the election and is expected to launch drastic austerity measures.
"We still have not seen the light at the end of the tunnel yet," said Ong Yi Ling, an analyst at Phillip Futures. "We will continue to have headlines from Europe to dominate the sentiment in the market."
Gold steady; caution prevails after Spain election
SINGAPORE, Nov 21 (Reuters) - Gold traded steady after its biggest weekly loss since September, as investors remained cautious even after Spain's centre-right opposition won a landslide victory in the election and is expected to launch drastic austerit measures.
"We still have not seen the light at the end of the tunnel yet," said Ong Yi Ling, an analyst at Phillip Futures.
20111121 1215 Global Market & Commodities Related News.
GLOBAL MARKETS-Asian shares dip, euro subdued after Spanish vote
TOKYO, Nov 21 (Reuters) - Asian shares fell on Monday as uncertainty remained over how euro zone leaders would respond to mounting funding difficulties for European banks, while a crushing election win for Spain's centre-right opposition raised hopes for reforms.
"Those policies would undoubtedly be welcomed by markets, yet may not be enough to stabilize the Spanish sovereign. Ultimately, we think it is likely that the ECB will need to step up its support," Barclays Capital analysts said in a research note.
COMMODITIES-Most markets down again; oil snaps 6 weeks of gain
NEW YORK, Nov 18 (Reuters) - Most commodities fell again on Friday, with U.S. oil prices finishing their first week lower since early October on worries over Europe and selling by investors taking profit from six weeks of gains.
"Liquidations on the December contract and profit-taking ahead of the Thanksgiving holiday (next) week pulled down U.S. crude futures," said Phil Flynn, analyst at PFGBest Research in Chicago.
Japan Exports Fall as China Sees Prolonged World Slump
Japanese exports dropped more than forecast in October, Singapore said its growth may slow to 1 percent next year and China signaled the global economy faces an extended slide. The reports may raise pressure on policy makers in export- reliant Asia to implement further stimulus measures. A record of the Bank of Japan’s Oct. 27 meeting today showed one board member favored adding 10 trillion yen ($130 billion) in asset purchases, and Chinese Vice Premier Wang Qishan said his nation must adopt more “forward looking” and flexible monetary policy. “Things are going to get worse before they get better,” said Vishnu Varathan, a Mizuho Corporate Bank Ltd. economist in Singapore. “Export growth will slow across Asia and we may see financial shocks coming through. Asian policy makers are going to become stimulatory all over again.”
Japan’s finance ministry reported today that shipments abroad fell 3.7 percent in October from a year before, the first drop in three months and an indication the nation’s rebound from the record March earthquake will slow. Singapore’s trade ministry said the nation’s gross domestic product may rise 1 percent to 3 percent in 2012, after a 5 percent gain this year, in a projection that didn’t incorporate a European recession.
Saudi sees balanced oil market as OPEC meeting nears
RIYADH, Nov 20 (Reuters) - The global oil market looks balanced, Saudi oil minister Ali al-Naimi indicated on Sunday, while the secretary general of the Organization of the Petroleum Exporting Countries said some producers need to cut back as Libyan output rebounds.
Speaking at the same conference in the Saudi capital with less than a month to go before OPEC meets, the head of the International Energy Agency (IEA) reiterated the major consumer group's concern that stubbornly high oil prices and tight supplies could harm fragile global economic growth.
Oil dips on economic concerns, spread selling
NEW YORK, Nov 18 (Reuters) - Oil fell on Friday as a bout of profit-taking following big moves in spreads this week overtook early euro zone optimism.
"(Prices) got a lift early on because the ECB was buying bonds, but I think there is some skepticism about how much leeway the ECB has to support the bond market that way," said Tim Evans, energy analyst for Citi Futures Perspective in New York.
Natural gas ends down, front month hits 1-year low
NEW YORK, Nov 18 (Reuters) - U.S. natural gas futures ended lower on Friday as record high supplies and fairly mild November weather drove the front-month contract to a one-year low for the fifth straight session.
"The rig count (decline) is the only point of light for the bulls. The weather still looks above normal, and the cash market has been very weak," said Steve Mosley at SMC Advisory Services in Arkansas, noting Henry Hub cash prices have been trading at 30 cents or more below futures.
Euro Coal-Prices steady, no trades seen
LONDON, Nov 18 (Reuters) - Prompt physical coal prices were broadly steady on Friday with no fresh trades reported.
"Yesterday and the day before there was some activity and traders today looked happy to sit the week out," one European dealer said.
TOKYO, Nov 21 (Reuters) - Asian shares fell on Monday as uncertainty remained over how euro zone leaders would respond to mounting funding difficulties for European banks, while a crushing election win for Spain's centre-right opposition raised hopes for reforms.
"Those policies would undoubtedly be welcomed by markets, yet may not be enough to stabilize the Spanish sovereign. Ultimately, we think it is likely that the ECB will need to step up its support," Barclays Capital analysts said in a research note.
COMMODITIES-Most markets down again; oil snaps 6 weeks of gain
NEW YORK, Nov 18 (Reuters) - Most commodities fell again on Friday, with U.S. oil prices finishing their first week lower since early October on worries over Europe and selling by investors taking profit from six weeks of gains.
"Liquidations on the December contract and profit-taking ahead of the Thanksgiving holiday (next) week pulled down U.S. crude futures," said Phil Flynn, analyst at PFGBest Research in Chicago.
Japan Exports Fall as China Sees Prolonged World Slump
Japanese exports dropped more than forecast in October, Singapore said its growth may slow to 1 percent next year and China signaled the global economy faces an extended slide. The reports may raise pressure on policy makers in export- reliant Asia to implement further stimulus measures. A record of the Bank of Japan’s Oct. 27 meeting today showed one board member favored adding 10 trillion yen ($130 billion) in asset purchases, and Chinese Vice Premier Wang Qishan said his nation must adopt more “forward looking” and flexible monetary policy. “Things are going to get worse before they get better,” said Vishnu Varathan, a Mizuho Corporate Bank Ltd. economist in Singapore. “Export growth will slow across Asia and we may see financial shocks coming through. Asian policy makers are going to become stimulatory all over again.”
Japan’s finance ministry reported today that shipments abroad fell 3.7 percent in October from a year before, the first drop in three months and an indication the nation’s rebound from the record March earthquake will slow. Singapore’s trade ministry said the nation’s gross domestic product may rise 1 percent to 3 percent in 2012, after a 5 percent gain this year, in a projection that didn’t incorporate a European recession.
Saudi sees balanced oil market as OPEC meeting nears
RIYADH, Nov 20 (Reuters) - The global oil market looks balanced, Saudi oil minister Ali al-Naimi indicated on Sunday, while the secretary general of the Organization of the Petroleum Exporting Countries said some producers need to cut back as Libyan output rebounds.
Speaking at the same conference in the Saudi capital with less than a month to go before OPEC meets, the head of the International Energy Agency (IEA) reiterated the major consumer group's concern that stubbornly high oil prices and tight supplies could harm fragile global economic growth.
Oil dips on economic concerns, spread selling
NEW YORK, Nov 18 (Reuters) - Oil fell on Friday as a bout of profit-taking following big moves in spreads this week overtook early euro zone optimism.
"(Prices) got a lift early on because the ECB was buying bonds, but I think there is some skepticism about how much leeway the ECB has to support the bond market that way," said Tim Evans, energy analyst for Citi Futures Perspective in New York.
Natural gas ends down, front month hits 1-year low
NEW YORK, Nov 18 (Reuters) - U.S. natural gas futures ended lower on Friday as record high supplies and fairly mild November weather drove the front-month contract to a one-year low for the fifth straight session.
"The rig count (decline) is the only point of light for the bulls. The weather still looks above normal, and the cash market has been very weak," said Steve Mosley at SMC Advisory Services in Arkansas, noting Henry Hub cash prices have been trading at 30 cents or more below futures.
Euro Coal-Prices steady, no trades seen
LONDON, Nov 18 (Reuters) - Prompt physical coal prices were broadly steady on Friday with no fresh trades reported.
"Yesterday and the day before there was some activity and traders today looked happy to sit the week out," one European dealer said.
20111121 1054 Malaysia Corporate Related News.
KPJ to build specialist hospital in Perlis
KPJ Healthcare, a leading private healthcare provider in Malaysia, is spreading its wings to build an eight-storey specialist centre in Pengkalan Asam, Perlis. Construction of Perlis Specialist Hospital, the first private specialist centre in the state, will begin in January, said Menteri Besar Datuk Seri Dr Md Isa Sabu at the ground breaking of phase one of the project costing RM30m. (Financial Daily)
KLK to invest RM700m in expansion
Oil palm plantation company Kuala Lumpur Kepong (KLK), with the help of the Performance Management and Delivery Unit (Pemandu), will pour RM700m into the expansion of its downstream oleochemicals operations. The company plans to add more oleochemical processing and research facilities, including a plant in Dumai, Sumatra, to its existing 13 plants in China, Indonesia, Malaysia, Switzerland, the Netherlands and Germany. (Malaysian Reserve)
DiGi forms tie-up to offer Gmail SMS
DiGi Telecommunication SB announced a strategic partnership with Google to offer Gmail Short Messaging Services (SMS) effective last Friday. DiGi was the first telecommunication company in Malaysia to offer the Gmail SMS service and the partnership was one of the many innovative ways DiGi was leveraging on to deliver its “Internet For All” promise, the company said in a statement. (Bernama)
Exxon Mobil: Gas, coal to stay as region’s main energy sources
Natural gas and coal will continue to be the main energy sources in South-East Asia, said Exxon Mobil Corporation. Senior energy advisor, corporate strategic planning department, David S. Reed said Malaysia would continue to see rising demand for electricity driven by the residential, commercial and industrial sectors, mainly for air conditioning. (Bernama)
Masterskill 3Q net profit slumps 78.8% to RM5.55m on lower enrolment
Masterskill Education Group Bhd (MEGB) net profit for the third quarter ended 30 Sept 30, 2011 fell 78.8% to RM5.6m from RM26.2m a year earlier, due mainly to lower student enrolment and higher overheads. MEGB said that its revenue for the quarter fell to RM61.2m from RM80.7m in 2010. Earnings per share fell to 1.00 sen from 9.00 sen a year earlier, while net assets per share stood at RM1.31. (Financial Daily)
KPJ Healthcare, a leading private healthcare provider in Malaysia, is spreading its wings to build an eight-storey specialist centre in Pengkalan Asam, Perlis. Construction of Perlis Specialist Hospital, the first private specialist centre in the state, will begin in January, said Menteri Besar Datuk Seri Dr Md Isa Sabu at the ground breaking of phase one of the project costing RM30m. (Financial Daily)
KLK to invest RM700m in expansion
Oil palm plantation company Kuala Lumpur Kepong (KLK), with the help of the Performance Management and Delivery Unit (Pemandu), will pour RM700m into the expansion of its downstream oleochemicals operations. The company plans to add more oleochemical processing and research facilities, including a plant in Dumai, Sumatra, to its existing 13 plants in China, Indonesia, Malaysia, Switzerland, the Netherlands and Germany. (Malaysian Reserve)
DiGi forms tie-up to offer Gmail SMS
DiGi Telecommunication SB announced a strategic partnership with Google to offer Gmail Short Messaging Services (SMS) effective last Friday. DiGi was the first telecommunication company in Malaysia to offer the Gmail SMS service and the partnership was one of the many innovative ways DiGi was leveraging on to deliver its “Internet For All” promise, the company said in a statement. (Bernama)
Exxon Mobil: Gas, coal to stay as region’s main energy sources
Natural gas and coal will continue to be the main energy sources in South-East Asia, said Exxon Mobil Corporation. Senior energy advisor, corporate strategic planning department, David S. Reed said Malaysia would continue to see rising demand for electricity driven by the residential, commercial and industrial sectors, mainly for air conditioning. (Bernama)
Masterskill 3Q net profit slumps 78.8% to RM5.55m on lower enrolment
Masterskill Education Group Bhd (MEGB) net profit for the third quarter ended 30 Sept 30, 2011 fell 78.8% to RM5.6m from RM26.2m a year earlier, due mainly to lower student enrolment and higher overheads. MEGB said that its revenue for the quarter fell to RM61.2m from RM80.7m in 2010. Earnings per share fell to 1.00 sen from 9.00 sen a year earlier, while net assets per share stood at RM1.31. (Financial Daily)
20111121 1053 Local & Global Economic Related News.
Economy posts higher growth of 5.8% for 3Q
Malaysia’s economy posted a higher growth of 5.8% for the third quarter (3Q) compared to the 4.3% registered in 2Q, boosted by robust domestic demand. In an economic and financial development report released by Bank Negara Malaysia last Friday, the central bank said most economic sectors recoded improvements in growth during the quarter, with manufacturing recording a significantly better performance, supported by firm regional demand for resource-based products. (Malaysian Reserve)
Japan: Exports fall as yen gains, Europe crisis crimp demand
Japan’s exports fell for the first time in three months, indicating that the yen’s appreciation and financial turmoil in Europe are slowing the nation’s recovery from the March disaster. Shipments dropped 3.7%t in October from a year earlier, the Ministry of Finance said today in Tokyo. The median estimate of 29 economists surveyed by Bloomberg News was for a 0.3%decline. (Bloomberg)
China: Trade surplus may be gone in two years, adviser says
China’s trade surplus may disappear within two years as domestic demand rises, making the yuan rate less of an issue, an adviser to the nation’s central bank said. “In one to two years, our trade surplus will be zero,” the adviser, Li Daokui, said in an interview in Beijing today. “It’s possible for the renminbi to face depreciation pressure. If that time comes, let the market decide its fluctuation,” he said, referring to the Chinese currency.. (Bloomberg)
EU: Spain’s Rajoy wins election as crisis punishes socialists
People’s Party leader Mariano Rajoy won the biggest parliamentary majority in a Spanish election in 29 years and called on Spaniards to work together to prevent the nation being overwhelmed by the sovereign debt crisis. Spain’s 10-year bond yield rose as high as 6.8% on Nov 17, the most since the start of the euro, with the gap between Spanish and German borrowing costs ending the week at 441 basis points or 4.4%. (Bloomberg)
US: Consumer spending probably rose in October: US economy preview
Consumer spending probably climbed in October as incomes grew by the most since May, indicating the biggest part of the US economy will bolster the recovery, economists said a report will show this week. Purchases rose 0.3% last month, according to the median estimate of 69 economists in a Bloomberg News survey before Commerce Department figures due on 23 Nov. Incomes also climbed 0.3%, the report may show. (Bloomberg)
US: Economy growing at fastest pace of 2011 in US forecasts
The US economy may end 2011 growing at its fastest clip in 18 months as analysts increase their forecasts for the fourth quarter just a few months after a slowdown raised concern among investors. The index of US leading indicators, designed to foreshadow the economy’s performance over the next three to six months, rose 0.9% in October, the biggest jump since February, after a 0.1% September increase, the New York-based Conference Board said. (Bloomberg)
Malaysia’s economy posted a higher growth of 5.8% for the third quarter (3Q) compared to the 4.3% registered in 2Q, boosted by robust domestic demand. In an economic and financial development report released by Bank Negara Malaysia last Friday, the central bank said most economic sectors recoded improvements in growth during the quarter, with manufacturing recording a significantly better performance, supported by firm regional demand for resource-based products. (Malaysian Reserve)
Japan: Exports fall as yen gains, Europe crisis crimp demand
Japan’s exports fell for the first time in three months, indicating that the yen’s appreciation and financial turmoil in Europe are slowing the nation’s recovery from the March disaster. Shipments dropped 3.7%t in October from a year earlier, the Ministry of Finance said today in Tokyo. The median estimate of 29 economists surveyed by Bloomberg News was for a 0.3%decline. (Bloomberg)
China: Trade surplus may be gone in two years, adviser says
China’s trade surplus may disappear within two years as domestic demand rises, making the yuan rate less of an issue, an adviser to the nation’s central bank said. “In one to two years, our trade surplus will be zero,” the adviser, Li Daokui, said in an interview in Beijing today. “It’s possible for the renminbi to face depreciation pressure. If that time comes, let the market decide its fluctuation,” he said, referring to the Chinese currency.. (Bloomberg)
EU: Spain’s Rajoy wins election as crisis punishes socialists
People’s Party leader Mariano Rajoy won the biggest parliamentary majority in a Spanish election in 29 years and called on Spaniards to work together to prevent the nation being overwhelmed by the sovereign debt crisis. Spain’s 10-year bond yield rose as high as 6.8% on Nov 17, the most since the start of the euro, with the gap between Spanish and German borrowing costs ending the week at 441 basis points or 4.4%. (Bloomberg)
US: Consumer spending probably rose in October: US economy preview
Consumer spending probably climbed in October as incomes grew by the most since May, indicating the biggest part of the US economy will bolster the recovery, economists said a report will show this week. Purchases rose 0.3% last month, according to the median estimate of 69 economists in a Bloomberg News survey before Commerce Department figures due on 23 Nov. Incomes also climbed 0.3%, the report may show. (Bloomberg)
US: Economy growing at fastest pace of 2011 in US forecasts
The US economy may end 2011 growing at its fastest clip in 18 months as analysts increase their forecasts for the fourth quarter just a few months after a slowdown raised concern among investors. The index of US leading indicators, designed to foreshadow the economy’s performance over the next three to six months, rose 0.9% in October, the biggest jump since February, after a 0.1% September increase, the New York-based Conference Board said. (Bloomberg)
20111121 1045 Global Market Related News.
Asian Stocks Retreat as U.S. Debt Committee Said to Be Close to Failure (Source: Bloomberg)
Asian stocks fell for a fifth day amid concern a U.S. congressional committee will fail to agree on ways to cut the nation’s indebtedness and as Deutsche Bank AG Chief Executive Officer Josef Ackermann said Europe needs a “firewall” to contain its debt crisis. Toyota Motor Corp., which receives 24 percent of revenue from the U.S., dropped 2.3 percent in Tokyo amid concern the failure of debt talks could undermine recovery in the world’s largest economy. Fanuc Corp, a maker of industrial robots, declined 1.8 percent as Japan’s exports fell faster than estimated. BHP Billiton Ltd., the world’s biggest mining company by market capitalization and Australia’s No. 1 oil producer, fell 0.5 percent as crude traded near a 7-day low. The MSCI Asia Pacific Index retreated 0.5 percent to 113.64 at 9:51 a.m. in Tokyo, set for its longest streak of losses since August. Almost two stocks fell for each that rose on the gauge.
Japanese Stocks Decline on U.S. Deficit Talks, Europe Crisis (Source: Bloomberg)
Japanese stocks fell for a second day, sending a benchmark gauge for the lowest close since April 2009, on speculation a U.S. congressional committee will struggle to reach an agreement on deficit-cutting measures and on concern Europe’s debt crisis will linger. Honda Motor Co., Japan’s second-largest carmaker by market value, fell 2.9 percent. Sony Corp. (6758), Japan’s No. 1 exporter of consumer electronics, slid 2.4 percent after a report showed Japan’s exports declined more than expected in October. Osaka Securities Exchange Co. rose 1.9 percent after a newspaper reported the bourse will announce a merger agreement with Tokyo Stock Exchange Group Inc. tomorrow. The Nikkei 225 (NKY) Stock Average fell 0.3 percent to 8,353 as of 10:05 a.m. in Tokyo, set for the lowest close since April 1, 2009. The Topix Index dropped 0.4 percent to 716.95, heading for the lowest close since March 12, 2009, with 19 of 33 industry groups on the gauge falling.
Emerging-Market Stocks Post Biggest Weekly Loss Since September on Europe (Source: Bloomberg)
Emerging-market stocks fell, driving the benchmark index to its worst week in two months, as Europe’s debt crisis deepened and Chinese bank shares slid after home prices declined in some of its biggest cities. The MSCI Emerging Markets Index dropped 1.9 percent to 934.08 today. The gauge retreated 3.8 percent this week, the most since the week ended Sept. 23. The Bovespa index retreated 0.5 percent after a report showed Brazil created fewer jobs than forecast in October. South Korea’s Kospi index declined 2 percent and benchmark indexes fell by at least 1 percent in Russia, Poland, Hungary, South Africa and Turkey.
Banks led a 3 percent decline in the Hang Seng China Enterprises Index after new home prices fell last month in some cities including Shanghai and a person with knowledge of the matter said China’s banking regulator warned lenders that some projects backed by local governments may run out of funds. The yield on Spanish 10-year bonds rose as much as 41 basis points to as high as 6.897 percent. German Chancellor Angela Merkel yesterday rejected French calls to deploy the ECB as a crisis backstop, defying global leaders and investors calling for more urgent action to halt the turmoil.
European Stocks Drop for Second Week in Three as Crisis Spreads (Source: Bloomberg)
European stocks declined for the second week in three as sovereign borrowing costs surged to record levels in the euro area and policy makers disagreed over their response to the spreading debt crisis. Cable & Wireless Worldwide Plc sank 35 percent after suspending future dividends. Dexia SA (DEXB) and KBC Groep NV (KBC), Belgium’s biggest lenders, slumped more than 20 percent. PSA Peugeot Citroen and Renault SA paced losses on a gauge of the region’s automakers. Voestalpine AG fell the most in more than three months after cutting its earnings outlook. The benchmark Stoxx Europe 600 Index dropped 3.7 percent this week to 232.17, its lowest close in six weeks, as Italian, Spanish and French bond yields soared, renewing concern that contagion from the debt crisis is infecting more euro members. The European Central Bank was said to have bought government bonds throughout the week offering bouts of respite to equities.
U.S. Stock-Index Futures Decline as Prospects Fade for Agreement on Budget (Source: Bloomberg)
U.S. stock-index futures retreated as signs lawmakers will fail to reach an agreement to cut the budget deficit added to concern spurred by Europe’s debt crisis. Futures on the Standard & Poor’s 500 Index expiring in December dropped 0.7 percent to 1,205.50 at 8:38 a.m. Tokyo time. The benchmark gauge for American equity lost 3.8 percent last week, the biggest retreat in two months, as Spanish, French and Italian bond yields rose and Fitch Ratings said Europe’s debt crisis poses a threat to American banks. The deficit-cutting congressional supercommittee will probably say that no agreement has been reached on at least $1.2 trillion in federal budget savings, a Democratic aide said.
U.S. Consumer Spending Likely Rose in October (Source: Bloomberg)
Consumer spending probably climbed in October as incomes grew by the most since May, indicating the biggest part of the U.S. economy will bolster the recovery, economists said a report will show this week. Purchases rose 0.3 percent last month, according to the median estimate of 69 economists in a Bloomberg News survey before Commerce Department figures due on Nov. 23. Incomes also climbed 0.3 percent, the report may show. An October gain in household spending, which accounts for about 70 percent of the economy, bodes well for the holiday shopping season that kicks off this week. Improving demand and the year-end expiration of a tax break may also spur companies to buy more equipment in the final months of 2011, helping the U.S. weather the effects of Europe’s debt crisis.
Fed’s Williams Says Fiscal Actions ‘Badly Needed’ to Spur Economic Growth (Source: Bloomberg)
Federal Reserve Bank of San Francisco President John Williams called for fiscal aid for the economy, saying government actions beyond Fed easing are imperative for bolstering the recovery and reducing joblessness. “Strong countercurrents” including a decline in wealth, tight credit and concern about financial markets are impeding growth, Williams said today at a forum in Santiago. “Fiscal policy actions that reduce uncertainty and stimulate recovery are badly needed” and should “work in tandem with monetary policy,” he said. Fed officials are increasingly calling on other parts of government to help lower unemployment that Williams forecasts will remain above acceptable levels until 2016. He cited as an example a recent U.S. government program to let more homeowners refinance mortgages, which could lower foreclosures and give a “modest boost” to consumption.
Treasuries Rise as Possible Budget Committee Failure Spurs Refuge Demand (Source: Bloomberg)
Treasuries rose, becoming the best- performing major bond market over three months, including currency changes, as stocks fell on speculation U.S. lawmakers will fail to agree on how to cut the budget deficit. U.S. securities extended a gain from last week that was driven by concern Europe’s leaders aren’t able to contain the region’s debt crisis, boosting demand for haven assets. The Treasury Department is scheduled to sell $35 billion of two-year notes today, the first of three auctions of coupon-bearing debt this week totaling $99 billion. “The policy in the U.S. is as bad as the policy in Europe,” said Roger Bridges, who oversees the equivalent of $15 billion of debt as the Sydney-based head of fixed income at Tyndall Investment Management Ltd., a unit of Japan’s Nikko Asset Management Co. “Investors will be attracted in a flight to quality,” to U.S. government debt.
Southeast Asian Slowdown Looms as Thai Floods Compound Europe Demand Slump (Source: Bloomberg)
Growth in Southeast Asian economies including Malaysia and Thailand may have peaked last quarter as the European debt crisis and Thai floods hurt the outlook for exports, adding pressure on policy makers to cut interest rates. Malaysia’s gross domestic product increased 4.8 percent in the three months through September from a year earlier, after a 4 percent expansion the previous quarter, according to the median of 25 estimates in a Bloomberg News survey. Thailand’s growth probably quickened to 4.5 percent from 2.6 percent, according to a survey of 11 economists. “Exports will likely soften in the coming months as Europe slides into a recession,” said Chua Hak Bin, a Singapore-based economist at Bank of America Merrill Lynch. “Both Bank Negara Malaysia and Bank of Thailand will keep their options open and ease if growth readings turn ugly in coming months.”
Japan Exports Fall on Yen Gains, Europe Crisis (Source: Bloomberg)
Japan’s exports fell for the first time in three months, indicating that the yen’s appreciation and financial turmoil in Europe are slowing the nation’s recovery from the March disaster. Shipments dropped 3.7 percent in October from a year earlier, the Ministry of Finance said today in Tokyo. The median estimate of 29 economists surveyed by Bloomberg News was for a 0.3 percent decline. The report suggests the rebound of the world’s third- largest economy from the record earthquake in March is losing momentum. Weakening overseas demand has led companies including Toshiba Corp. and Nippon Yusen K.K. to call on the government to follow up on last month’s yen intervention with steps to prevent the currency from appreciating further.
Singapore Economic Growth May Slow in 2012 (Source: Bloomberg)
Singapore said its economic growth may slow next year, extending a moderation in expansion that’s already prompted the central bank to ease monetary policy. The economy will grow 1 percent to 3 percent in 2012 after expanding 5 percent this year, the trade ministry said in a statement today. Non-oil domestic exports will probably rise 2 percent to 3 percent in 2011, lower than a previous forecast for shipments to grow 6 percent to 7 percent, the trade promotion agency said in a separate statement today. Europe’s debt crisis and disruption caused by flooding in Thailand threaten to hurt Southeast Asian growth, pressuring officials to shield their economies. Indonesia cut interest rates to a record low this month, and Singapore’s central bank, which uses the exchange rate to manage inflation, said in October it will slow gains in the local dollar.
‘Hard Times Ahead’ After Election Win: Rajoy (Source: Bloomberg)
Mariano Rajoy won the biggest parliamentary majority in a Spanish election in almost 30 years, and told Spaniards to brace for difficult times as the nation fights to avoid being overwhelmed by the debt crisis. Rajoy’s People’s Party swept the ruling Socialists from power after eight years, winning 186 of the 350 seats in Parliament, compared with 110 for the ruling party’s candidate Alfredo Perez Rubalcaba. That’s the worst result for the Socialists in more than three decades. Opinion polls in the month before the vote showed the PP winning 184 to 198 seats. “Hard times lie ahead,” Rajoy told supporters outside the PP’s headquarters in Madrid, giving no new details of his plans. “We are going to govern in the most delicate situation Spain has faced in 30 years.”
Monti Wins Final Confidence Vote as Government Moves to Tackle Debt Crisis (Source: Bloomberg)
Italian Prime Minister Mario Monti won a final parliamentary confidence vote, granting full power to his new government after pledging to spur growth and reduce debt in the euro-region’s third-largest economy. The 630-seat Chamber of Deputies voted 556 to 61 in favor of Monti’s new administration of technocrats, following the Senate’s approval yesterday. Monti said today he wanted his government to last until elections scheduled in 2013, though that depended on retaining the support of parties. The Northern League’s lawmakers 59 voted against him today. “I know that the economic, social and political crisis is due to the serious malfunction of the financial situation and the markets, but I believe that the first thing to do, and I say this particularly to the Italians, is to stop being so comfortable with saying that others are responsible,” the former European Union commissioner told lawmakers in Rome.
Yen, Dollar Advance on Haven Demand as Prospects Fade for U.S. Debt Accord (Source: Bloomberg)
The yen and the dollar rose against most of their major counterparts on demand for safer assets after a Democratic aide said a U.S. congressional committee is likely to announce today it failed to agree on deficit cuts. The Australian dollar declined for a sixth day against the yen as futures showed U.S. stocks will fall, damping demand for higher-yielding currencies. The euro held last week’s biggest loss versus the yen since September even as Spain’s opposition won a parliamentary majority in a general election. “If the agreement isn’t reached, then that does lead to a spike in risk aversion,” said Joseph Capurso, a Sydney-based currency strategist at Commonwealth Bank of Australia, the nation’s biggest lender. “That would support the U.S. dollar and also perhaps gives a little bit of support for the yen.”
Asian stocks fell for a fifth day amid concern a U.S. congressional committee will fail to agree on ways to cut the nation’s indebtedness and as Deutsche Bank AG Chief Executive Officer Josef Ackermann said Europe needs a “firewall” to contain its debt crisis. Toyota Motor Corp., which receives 24 percent of revenue from the U.S., dropped 2.3 percent in Tokyo amid concern the failure of debt talks could undermine recovery in the world’s largest economy. Fanuc Corp, a maker of industrial robots, declined 1.8 percent as Japan’s exports fell faster than estimated. BHP Billiton Ltd., the world’s biggest mining company by market capitalization and Australia’s No. 1 oil producer, fell 0.5 percent as crude traded near a 7-day low. The MSCI Asia Pacific Index retreated 0.5 percent to 113.64 at 9:51 a.m. in Tokyo, set for its longest streak of losses since August. Almost two stocks fell for each that rose on the gauge.
Japanese Stocks Decline on U.S. Deficit Talks, Europe Crisis (Source: Bloomberg)
Japanese stocks fell for a second day, sending a benchmark gauge for the lowest close since April 2009, on speculation a U.S. congressional committee will struggle to reach an agreement on deficit-cutting measures and on concern Europe’s debt crisis will linger. Honda Motor Co., Japan’s second-largest carmaker by market value, fell 2.9 percent. Sony Corp. (6758), Japan’s No. 1 exporter of consumer electronics, slid 2.4 percent after a report showed Japan’s exports declined more than expected in October. Osaka Securities Exchange Co. rose 1.9 percent after a newspaper reported the bourse will announce a merger agreement with Tokyo Stock Exchange Group Inc. tomorrow. The Nikkei 225 (NKY) Stock Average fell 0.3 percent to 8,353 as of 10:05 a.m. in Tokyo, set for the lowest close since April 1, 2009. The Topix Index dropped 0.4 percent to 716.95, heading for the lowest close since March 12, 2009, with 19 of 33 industry groups on the gauge falling.
Emerging-Market Stocks Post Biggest Weekly Loss Since September on Europe (Source: Bloomberg)
Emerging-market stocks fell, driving the benchmark index to its worst week in two months, as Europe’s debt crisis deepened and Chinese bank shares slid after home prices declined in some of its biggest cities. The MSCI Emerging Markets Index dropped 1.9 percent to 934.08 today. The gauge retreated 3.8 percent this week, the most since the week ended Sept. 23. The Bovespa index retreated 0.5 percent after a report showed Brazil created fewer jobs than forecast in October. South Korea’s Kospi index declined 2 percent and benchmark indexes fell by at least 1 percent in Russia, Poland, Hungary, South Africa and Turkey.
Banks led a 3 percent decline in the Hang Seng China Enterprises Index after new home prices fell last month in some cities including Shanghai and a person with knowledge of the matter said China’s banking regulator warned lenders that some projects backed by local governments may run out of funds. The yield on Spanish 10-year bonds rose as much as 41 basis points to as high as 6.897 percent. German Chancellor Angela Merkel yesterday rejected French calls to deploy the ECB as a crisis backstop, defying global leaders and investors calling for more urgent action to halt the turmoil.
European Stocks Drop for Second Week in Three as Crisis Spreads (Source: Bloomberg)
European stocks declined for the second week in three as sovereign borrowing costs surged to record levels in the euro area and policy makers disagreed over their response to the spreading debt crisis. Cable & Wireless Worldwide Plc sank 35 percent after suspending future dividends. Dexia SA (DEXB) and KBC Groep NV (KBC), Belgium’s biggest lenders, slumped more than 20 percent. PSA Peugeot Citroen and Renault SA paced losses on a gauge of the region’s automakers. Voestalpine AG fell the most in more than three months after cutting its earnings outlook. The benchmark Stoxx Europe 600 Index dropped 3.7 percent this week to 232.17, its lowest close in six weeks, as Italian, Spanish and French bond yields soared, renewing concern that contagion from the debt crisis is infecting more euro members. The European Central Bank was said to have bought government bonds throughout the week offering bouts of respite to equities.
U.S. Stock-Index Futures Decline as Prospects Fade for Agreement on Budget (Source: Bloomberg)
U.S. stock-index futures retreated as signs lawmakers will fail to reach an agreement to cut the budget deficit added to concern spurred by Europe’s debt crisis. Futures on the Standard & Poor’s 500 Index expiring in December dropped 0.7 percent to 1,205.50 at 8:38 a.m. Tokyo time. The benchmark gauge for American equity lost 3.8 percent last week, the biggest retreat in two months, as Spanish, French and Italian bond yields rose and Fitch Ratings said Europe’s debt crisis poses a threat to American banks. The deficit-cutting congressional supercommittee will probably say that no agreement has been reached on at least $1.2 trillion in federal budget savings, a Democratic aide said.
U.S. Consumer Spending Likely Rose in October (Source: Bloomberg)
Consumer spending probably climbed in October as incomes grew by the most since May, indicating the biggest part of the U.S. economy will bolster the recovery, economists said a report will show this week. Purchases rose 0.3 percent last month, according to the median estimate of 69 economists in a Bloomberg News survey before Commerce Department figures due on Nov. 23. Incomes also climbed 0.3 percent, the report may show. An October gain in household spending, which accounts for about 70 percent of the economy, bodes well for the holiday shopping season that kicks off this week. Improving demand and the year-end expiration of a tax break may also spur companies to buy more equipment in the final months of 2011, helping the U.S. weather the effects of Europe’s debt crisis.
Fed’s Williams Says Fiscal Actions ‘Badly Needed’ to Spur Economic Growth (Source: Bloomberg)
Federal Reserve Bank of San Francisco President John Williams called for fiscal aid for the economy, saying government actions beyond Fed easing are imperative for bolstering the recovery and reducing joblessness. “Strong countercurrents” including a decline in wealth, tight credit and concern about financial markets are impeding growth, Williams said today at a forum in Santiago. “Fiscal policy actions that reduce uncertainty and stimulate recovery are badly needed” and should “work in tandem with monetary policy,” he said. Fed officials are increasingly calling on other parts of government to help lower unemployment that Williams forecasts will remain above acceptable levels until 2016. He cited as an example a recent U.S. government program to let more homeowners refinance mortgages, which could lower foreclosures and give a “modest boost” to consumption.
Treasuries Rise as Possible Budget Committee Failure Spurs Refuge Demand (Source: Bloomberg)
Treasuries rose, becoming the best- performing major bond market over three months, including currency changes, as stocks fell on speculation U.S. lawmakers will fail to agree on how to cut the budget deficit. U.S. securities extended a gain from last week that was driven by concern Europe’s leaders aren’t able to contain the region’s debt crisis, boosting demand for haven assets. The Treasury Department is scheduled to sell $35 billion of two-year notes today, the first of three auctions of coupon-bearing debt this week totaling $99 billion. “The policy in the U.S. is as bad as the policy in Europe,” said Roger Bridges, who oversees the equivalent of $15 billion of debt as the Sydney-based head of fixed income at Tyndall Investment Management Ltd., a unit of Japan’s Nikko Asset Management Co. “Investors will be attracted in a flight to quality,” to U.S. government debt.
Southeast Asian Slowdown Looms as Thai Floods Compound Europe Demand Slump (Source: Bloomberg)
Growth in Southeast Asian economies including Malaysia and Thailand may have peaked last quarter as the European debt crisis and Thai floods hurt the outlook for exports, adding pressure on policy makers to cut interest rates. Malaysia’s gross domestic product increased 4.8 percent in the three months through September from a year earlier, after a 4 percent expansion the previous quarter, according to the median of 25 estimates in a Bloomberg News survey. Thailand’s growth probably quickened to 4.5 percent from 2.6 percent, according to a survey of 11 economists. “Exports will likely soften in the coming months as Europe slides into a recession,” said Chua Hak Bin, a Singapore-based economist at Bank of America Merrill Lynch. “Both Bank Negara Malaysia and Bank of Thailand will keep their options open and ease if growth readings turn ugly in coming months.”
Japan Exports Fall on Yen Gains, Europe Crisis (Source: Bloomberg)
Japan’s exports fell for the first time in three months, indicating that the yen’s appreciation and financial turmoil in Europe are slowing the nation’s recovery from the March disaster. Shipments dropped 3.7 percent in October from a year earlier, the Ministry of Finance said today in Tokyo. The median estimate of 29 economists surveyed by Bloomberg News was for a 0.3 percent decline. The report suggests the rebound of the world’s third- largest economy from the record earthquake in March is losing momentum. Weakening overseas demand has led companies including Toshiba Corp. and Nippon Yusen K.K. to call on the government to follow up on last month’s yen intervention with steps to prevent the currency from appreciating further.
Singapore Economic Growth May Slow in 2012 (Source: Bloomberg)
Singapore said its economic growth may slow next year, extending a moderation in expansion that’s already prompted the central bank to ease monetary policy. The economy will grow 1 percent to 3 percent in 2012 after expanding 5 percent this year, the trade ministry said in a statement today. Non-oil domestic exports will probably rise 2 percent to 3 percent in 2011, lower than a previous forecast for shipments to grow 6 percent to 7 percent, the trade promotion agency said in a separate statement today. Europe’s debt crisis and disruption caused by flooding in Thailand threaten to hurt Southeast Asian growth, pressuring officials to shield their economies. Indonesia cut interest rates to a record low this month, and Singapore’s central bank, which uses the exchange rate to manage inflation, said in October it will slow gains in the local dollar.
‘Hard Times Ahead’ After Election Win: Rajoy (Source: Bloomberg)
Mariano Rajoy won the biggest parliamentary majority in a Spanish election in almost 30 years, and told Spaniards to brace for difficult times as the nation fights to avoid being overwhelmed by the debt crisis. Rajoy’s People’s Party swept the ruling Socialists from power after eight years, winning 186 of the 350 seats in Parliament, compared with 110 for the ruling party’s candidate Alfredo Perez Rubalcaba. That’s the worst result for the Socialists in more than three decades. Opinion polls in the month before the vote showed the PP winning 184 to 198 seats. “Hard times lie ahead,” Rajoy told supporters outside the PP’s headquarters in Madrid, giving no new details of his plans. “We are going to govern in the most delicate situation Spain has faced in 30 years.”
Monti Wins Final Confidence Vote as Government Moves to Tackle Debt Crisis (Source: Bloomberg)
Italian Prime Minister Mario Monti won a final parliamentary confidence vote, granting full power to his new government after pledging to spur growth and reduce debt in the euro-region’s third-largest economy. The 630-seat Chamber of Deputies voted 556 to 61 in favor of Monti’s new administration of technocrats, following the Senate’s approval yesterday. Monti said today he wanted his government to last until elections scheduled in 2013, though that depended on retaining the support of parties. The Northern League’s lawmakers 59 voted against him today. “I know that the economic, social and political crisis is due to the serious malfunction of the financial situation and the markets, but I believe that the first thing to do, and I say this particularly to the Italians, is to stop being so comfortable with saying that others are responsible,” the former European Union commissioner told lawmakers in Rome.
Yen, Dollar Advance on Haven Demand as Prospects Fade for U.S. Debt Accord (Source: Bloomberg)
The yen and the dollar rose against most of their major counterparts on demand for safer assets after a Democratic aide said a U.S. congressional committee is likely to announce today it failed to agree on deficit cuts. The Australian dollar declined for a sixth day against the yen as futures showed U.S. stocks will fall, damping demand for higher-yielding currencies. The euro held last week’s biggest loss versus the yen since September even as Spain’s opposition won a parliamentary majority in a general election. “If the agreement isn’t reached, then that does lead to a spike in risk aversion,” said Joseph Capurso, a Sydney-based currency strategist at Commonwealth Bank of Australia, the nation’s biggest lender. “That would support the U.S. dollar and also perhaps gives a little bit of support for the yen.”
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